FOMC meeting statement to drop this Wednesday
The Federal Reserve’s Federal Open Market Committee meeting statement is expected to be released this Wednesday, September 16, 2020. Here is a preview of the highlights of the meeting.
Market expectations expect little to no change in policy from the Federal Bank this week.
Goldman Sachs says that the move from the Federal government to skew US Trading purchases toward longer maturities would slow the economy
JPMorgan is also not expecting the Federal government to extend the maturity of treasury purchases. They also say that any inflation-outcome-based guidance is not to be expected this week.
The ING wants to operationalize its new average inflation targeting approach with some additional forward guidance. However, with fragile equity markets and risk sentiment, it is highly unlikely to happen this week
The FOMC meeting statement may codify reference to targeting an average of 2% inflation over time.
It may reveal further discussion of the strategy review but matters such as strengthened forward guidance are not expected to be offered until late in the year.