What the Fed Will Do This Week, and Why
Having signaled that it will announce a rate cut, the central bank’s big questions are how much, when and why.
Jerome Powell and other key central bankers are in an unenviable position.
Photographer: Scott Olson/Getty Images
This week’s Federal Reserve policy meeting is likely to signal another dovish shift in U.S. monetary policy, though not as pronounced as markets have already priced in and Wall Street strategists are increasingly predicting. In the process, the central bank will highlight the tricky policy trade-offs and inherent uncertainties facing the Fed and other key central banks.
With the Fed already likely to signal on Wednesday a clearer path to lower interest rates compared to what has been previously communicated, the questions are how much, when and why.