Abstract:Considering nothing is likely to happen when it comes to major policy decisions, the meeting promises several fascinating subplots.
Considering nothing is likely to happen when it comes to major policy decisions, this week's Federal Reserve meeting is packed with intrigue.
When the Federal Open Market Committee releases its interest rate decision Wednesday afternoon, the narrative is almost certain to look a lot like the June meeting, with little changed in the statement and officials again holding off on any cuts.
However, several fascinating subplots will be in play. Consider:
Ultimately, though, the committee is likely to stand pat, putting the distractions on the side and the decision over a cut off to September.
“They're not going to get anything if they ease, other than they'll look like they're knuckling under to the president,” said Bill English, the Fed's former head of monetary affairs and now a professor at the Yale School of Management. “So I think their best policy for sure is just to look at the data, make their best judgment, make their policy decision and explain it as well as they can.”
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