Federal Open Market Committee’s (FOMC) monetary policy statement from September and remarks by Federal Reserve Chairman Jerome Powell. Each of them is set to provide further insight into central bankers’ assessments of economic activity during the ongoing pandemic. “Stock-reactid =”
Less than a month ago, at their annual economic symposium, Fed officials proposed their new political framework would allow them to avoid preventively raising interest rates to stave off higher inflation. “data-reactid =” 17 “> FOMC’s policy statement from September is expected to be released at 2 pm ET on Wednesday and will be followed by comments from Powell about half As central bank officials have previously telegraphed that interest rates will remain at zero for at least the next two years, Investors will look for clues as to what could make policy makers raise interest rates on the line Less than a month ago, Fed officials suggested at their annual economic symposium that their new policy framework would allow them to avoid proactively raising interest rates. to ward off higher inflation.
“President Powell wants to emphasize the key message of the Fed’s new strategy; they are pursuing growth, ”wrote Ian Shepherdson, chief economist at Pantheon Macroeconomics, in a note Tuesday.
“It is not clear whether the first FOMC meeting since the release of the Fed’s new monetary policy strategy will bring about a real shift in policy, although we find it unlikely that decision-makers will immediately focus on their forward-looking interest rate guidance,” Shepherdson added. The minutes of the FOMC meeting from 28 to 29 July make it clear that performance-based guidance has some support in the committee, but it does not appear to be overwhelming; only ‘a number’ of participants – not ‘many’ or ‘most’ favor the idea. “
“If the Fed does not use this meeting to reinforce its forward-looking guidance, markets will focus on the wording of the statement, which we expect will recognize the slow momentum evident in many of the latest data, both official and unofficial,” he said. said.
Powell and other FOMC members have repeatedly stressed the importance of fiscal policy together with monetary policy as significant for the economic recovery. “data-reactid =” 25 “> Fed Chairman Powell’s remarks Wednesday will likely also include another ploy for congressional lawmakers to pass more legislation aimed directly at helping Main Street businesses and households. Both Powell and other FOMCs Members have repeatedly emphasized the importance of fiscal policy, together with monetary policy, as important for economic recovery.
Elsewhere, the economic data sets for release on Wednesday morning will include the Department of Commerce’s August retail sales report, which is expected to show a fourth straight monthly increase, albeit at a declining rate. The retail level in July had risen back to pre-pandemic levels.
18:05 ONE TUESDAY: Open futures open slightly changed
Here were the main features of the stock markets from 18.05 ET on Monday:
S&P 500 futures (ES = F): 3,407.25, up by 2 points or 0.06%
Dow futures (YM = F): 28,042.00, up 15 points or 0.05%
Nasdaq futures (NQ = F): 11,473.00, up by 8.75 points or 0.08%
Find live IPOs and the latest business and finance news“data-reactid =” 47 “>Find live IPOs and the latest business and financial news
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