Fed Balance Sheet Shifts Into Limelight Absent Rate Hike Urgency
- Statement by FOMC may clarify timing of asset rolloff plans
- Weak inflation may prompt dovish tweaks to Fed’s views
Odyssey Asset's Pfeil Sees Fed Policy Overshoot
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If the Federal Reserve delivers any surprises at its meeting this week, they will probably come from news on when it plans to start shrinking its balance sheet.
Economists don’t foresee an interest-rate hike at the two-day gathering, which wraps up with a statement at 2 p.m. on Wednesday in Washington. Policy makers might update their language on inflation, because weakness in price data has persisted since they met in June, but those changes should be minor. There’s no press conference scheduled after this meeting.