The Fed is meeting Tuesday for a two-day policy meeting. Media outlets say the central bank is not expected to take any action. However, experts say talk about interest rates, inflation, and the economy could drive market moves. Some economists expect Fed officials to mention a coming tapering of its bond-buying program.
A full rundown of what to expect from the Federal Reserve on Wednesday
The Federal Reserve is not expected to take any policy actions after its two-day meeting this week, but it is likely to signal that it is thinking about them.
Some economists expect the Fed to mention a coming tapering of its bond-buying program and give preliminary guidance on the discussion but not fully commit to tapering yet. The Fed will also release new economic forecasts, which it does quarterly.
There’s a chance it could pencil in an initial rate hike in 2023. In its previous forecast, there was no consensus for a rate hike among Fed officials though 2023.
“I think the commentary and the press conference will be interesting. There’s clearly a division on the board and among the Fed presidents about how strong the economy is, and whether it’s time to start evolving the policy,” said Rick Rieder, chief investment officer global fixed income at BlackRock. “How the chairman describes that is going to be very interesting. It’s hard to say it’s [going to be] hawkish because … I think it’s going from uber dovish to overly dovish.”
The Fed’s two-day meeting ends Wednesday afternoon with the release of its usual statement and the quarterly projections. Fed Chairman Jerome Powell will then hold a press briefing.
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Yahoo Finance/Emily McCormick
Stock futures mixed as investors digest retail sales, inflation data
Stock futures were mixed Tuesday morning investors considered a spate of new economic data, including a weaker-than-expected print on consumer spending during the recovery.
Contracts on the S&P 500 and Nasdaq rose, while contracts the Dow fluctuated between gains and losses. Investors considered another batch of key economic data out Tuesday morning, offering looks at both the strength of the consumer and extent of price increases across the supply chain.
The Commerce Department’s May retail sales report showed the first drop in sales since February, representing some more moderation after a stimulus-boosted period earlier in the spring. And the Bureau of Labor Statistics’ producer price index is anticipated to showed a 6.6% year-on-year increase, ramping from April’s 6.2% rise as supply shortages and resurgent demand push prices higher.
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Putin coming to Biden meeting with ‘blood on his hands’: Joe Lieberman
United Against Nuclear Iran Chairman and former Connecticut Sen. Joe Lieberman on President Biden’s upcoming summit with Russian President Vladimir Putin.
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