Soft U.S. inflation data has raised uncertainty among investors about the Federal Reserve’s policy plans for the rest of the year. Fed Chair Janet Yellen and her colleagues have an opportunity this week to clarify the outlook.
The Federal Open Market Committee is widely expected to agree on an interest-rate increase Wednesday at the conclusion of a two-day gathering in Washington. It will probably also acknowledge recent inflation declines, while sticking to previous guidance for another hike before year-end and a first step toward unwinding the central bank’s $4.5 trillion balance sheet.
Matthew Boesler & Steve Matthews | Bloomberg