Markets Await The FED’s Decision

Markets await the Fed's decision. The US Federal Reserve (FED) will announce its policy rate decision today.

It is estimated that the Federal Open Market Committee (FOMC) will keep interest rates close to zero after the 2-day meeting and continue its monthly asset purchase program of 120 billion dollars. In the text of the decision, it will be followed whether changes will be made in the language regarding inflation and risks caused by the pandemic. After the decision, Fed Chairman Jerome Powell will speak at the press conference. Mellon Chief Economist Vincent Reinhart stated that FED officials are worried about the pandemic, they are satisfied with the economic data, but there is still a long way to go. At the meeting to be held today, the issue of when asset purchases will be reduced will be the most striking issue.

High Inflation May Be Emphasized

In tonight's monetary policy text, it is foreseen to present a positive view for growth, to mention high inflation, but to emphasize that price increases are mostly dependent on temporary factors. It is also said that the committee may make some changes in the inflation discourse as inflation has seen its highest level since 2008. In his speech on July 14, Fed Chairman Powell stated that inflation has risen significantly and may rise for the next few months before moderating.