Fed interest-rate decision comes out Wednesday at 2:00 – but weaker than expected data leaves few economists expecting a rate hike.
The Federal Reserve’s decision on whether to raise interest rates is due Wednesday at 2 p.m. Eastern.
What will Old Yeller do?
Most economists expect the Fed to stand pat as it has since December, when it hiked rates for the first time since 2006.
The Fed’s strategy has not changed since last December. The central bank expects to very gradually hike rates, noted Ian Shepherdson, chief economist at Pantheon Macroeconomics.
But tactically, the Fed “has been all over the map,” he added.
See: Fed’s dot plot may signal dark economic times
Markets expected the Fed to hike rates for the second time this cycle in March, but the central bank demurred after the stock market swooned.
The Fed then hinted strongly in April that it was considering hiking rates in June, but a weak May jobs report again kept them on the sidelines.
Last month, Fed Chairwoman Janet Yellen said at the Fed’s Jackson Hole conference that the case for a rate hike was strengthening. But weaker-than-expected data over the last few weeks has led the market to view any move as unlikely.
Some economists still think the Fed may surprise with a interest-rate hike Wednesday, but others saw little chance of a move.
Financial markets can expect Yellen to start her press conference at 2:30 p.m. SOURCE