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MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
There is little data for markets to focus on Wednesday, but all eyes will be firmly on the U.S. capital later in the day, awaiting the outcome of the Federal Reserve's September policy meeting
Fed in Focus (1900BST)
The Fed is expected to affirm its commitment to start winding down pandemic-era stimulus policies this year by paring its USD120 billion monthly asset purchase program, while fresh economic projections could also signal a more aggressive approach to eventual interest rate hikes, our Washington bureau writes in the latest Fed State of Play.
Policymakers are unlikely to take any policy action at the September meeting, but they may agree internally on a November announcement for a QE tapering plan unless the job market sours.
The FOMC will also keep the benchmark fed funds rate at a rock-bottom 0% to 0.25% range, but surprisingly high inflation since June could stir up growing support for raising interest rates next year. The surge in Delta variant Covid cases acts as a countervailing force, however, and the uncertainty could see some FOMC members holding off from advancing rate hike dots, former Fed officials said.The FOMC is expected to affirm its commitment to start winding down pandemic-era stimulus policies by slowing its USD120 billion monthly asset purchase program at some point this year.
An updated SEP will also show when the committee expects to raise rates when more stringent employment and inflation objectives are met. Former Fed officials said in interviews there's heightened risks a hike could come as soon as next year but delta variant uncertainty could see some FOMC members holding off.
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.