Economics
Fed to Avoid Early Exit or Bond-Taper Signal: Decision-Day Guide
- Fed seen keeping rates near zero, with no change in guidance
- Powell to push back against tapering bond buying any time soon
This article is for subscribers only.
Federal Reserve Chair Jerome Powell is expected to maintain the central bank’s aggressive support of the U.S. economy, despite having spied “light at the end of the tunnel” from the Covid-19 pandemic.
The Federal Open Market Committee is all but certain to hold interest rates near zero at the conclusion of its two-day policy meeting on Wednesday, and repeat a vow to keep buying bonds at the current $120 billion monthly pace. The panel will release a statement at 2 p.m. and Powell will hold a press briefing 30 minutes later. No quarterly forecasts are scheduled to be published after this gathering.