Will the Fed reduce balance sheet?
This article is originally referred from Yadix News.
Fed Interest Rate Decision – Sep 20, 18:00: The Fed concludes its policy meeting this evening and will share updates on economic projections, latest forecasts for growth, unemployment, inflation and interest rates.
It is expected that the interest rates will remain steady, and the market’s focus will be on whether the Fed Chair Janet Yellen will signal for another rate hike especially as there has been softer wage growth, employment and spending since the last policy meeting.
Many experts are suggesting that there is very little to be excited about regarding the U.S. economic outlook.
One important factor from this meeting will be the Fed’s plans and details of how and when the reduction of its $4.5 trillion balance sheet will proceed.
The target is to reduce to $2-2.5 trillion by allowing $10 – $50 billion of bonds to mature each month without reinvesting the proceeds and this announcement is likely to influence the market.
Currently, the dollar is losing traction against other currencies and suffered extended losses overnight prior to the meeting.
The result of the meeting will likely to cause volatility in the market and is known to be a major market driver which presents good trading opportunities.
Original Source: Yadix News