Brian Chappatta, Columnist

The ‘Not QE’ Debate Looms Large Over Fed Decision

The central bank may tweak its “other” interest rate and will most likely face tough questions about its balance-sheet expansion.

January 28, 2020 at 11:00 AM UTC

By Brian Chappatta

Brian Chappatta is managing editor of Bloomberg News' leveraged finance and distressed debt teams. He was previously managing editor and team leader of its wealth group. Before that he was a Bloomberg Opinion markets and finance columnist and a bonds reporter for Bloomberg News.

Jerome Powell won’t be able to avoid the “QE-or-not-QE” question.
Photographer: Eric Baradat/AFP/Getty Images

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Federal Reserve officials have made clear that if all goes according to plan in 2020, it’ll be a rather quiet year. They expect to hold the fed funds rate, the central bank’s key lending benchmark, steady throughout the next 12 months.

It’s true that on that front, they won’t have much to discuss when they gather this week for the two-day Federal Open Market Committee in Washington. The Fed will stick to its current range of 1.5% to 1.75%. Chair Jerome Powell will reiterate that the economy is in a “good place” and that it would take a material change to the outlook to even consider moving in either direction anytime soon.