When no interest rate hike is expected the FED meetings always seem to be lost in the news of the day.
Today the FED starts their meeting, which will result tomorrow with no FED Funds rate hike. It would be near impossible to raise rates at this time as there is almost zero expectations for a hike–and while the FED would have you believe they don’t pay much attention to the markets I think they are paying plenty of attention to the markets.
While the meeting will not result in any rate hike Chair Powell will have a news conference tomorrow afternoon and that can always result in some fireworks in the marketplace.
Probably the key items markets will be watching for is further news relative to the runoff of the balance sheet. Right now the balance sheet stands at $3.97 trillion dollars. The question would be – what level does the FED plan to take the balance sheet to eventually?