The Federal Reserve Federal Open Market Committee meeting statement will be issued on Wednesay 27 January at 2pm NY time (1900GMT)
- followed a half-hour later by Chair Powell’s press conference
Earlier preview here:
- FOMC is widely expected to leave monetary policy unchanged at this meeting.
Excerpts from Westpac on what they expect:
- recent data for the US has been decidedly downbeat
- pandemic risks remain elevated
- FOMC is likely to err on the optimistic side when assessing the economic outlook
- now that the Democrats have control over Congress, prospects for fiscal stimulus are much improved. Moreover, vaccine deployment has begun and is expected to quickly ramp up.
- The above does not mean the FOMC will take a back step with policy in the foreseeable future. Financial conditions must remain highly accommodative so as to make sure the recovery does not mature before full employment is reached and inflation is back at target.
- The risks to inflation and employment will remain to the downside throughout 2021