Markets Are Waiting For The FED Decision

Markets are waiting for the US Federal Reserve (FED) decision. So when will the Fed meeting be held?

It is not expected that the Fed will present any special action plan for its critical meeting in March, in the interest rate decision that will be announced this evening after the monetary policy meeting. However, since there is no significant change in the course of the economy, it seems likely that the FED will start to end the epidemic period economic support at its meeting in March. The Fed often uses its meetings before critical policy steps to send a message about its expectations. In his research note, economist Roberto Perli stated that with the effect of "very high" inflation in the USA and the unemployment rate that fell to 3.9 percent, FED Chairman Jerome Powell and his team will talk about the economy without being too pessimistic about inflation and will prepare the ground for the interest rate hike in March. Perli also said that Fed officials may continue to consider how and when to reduce the massive amount of Treasury bonds and mortgage-backed securities held by the central bank. Fed Chairman Powell will make a press statement half an hour after the interest rate decision is announced. Given that Fed officials won't update their economy and interest rate expectations tonight, it will be up to Powell to explain how the central bank's views align with those of investors who advocate a stronger fight against inflation. The FED is expected to keep the overnight benchmark rate constant at close to zero.