FOMC PREVIEW (FOMC STATEMENT @ 11.30 PM IST / PRESS CONF @ 00.00 AM IST) FEDERAL RESERVE IS SET TO TRIM ITS BOND-BUYING STIMULUS FOR A THIRD TIME IN A ROW,PROBABLY REWRITE ITS GUIDANCE ON WHEN IT MIGHT EVENTUALLY RAISE INTEREST RATES. A REDUCTION IN THE FEDS MONTHLY PURCHASES OF TREASURIES AND MORTGAGE-BACKED SECURITIES BY $5 BILLION EACH, AS WIDELY EXPECTED LESS CERTAIN IS WHAT THE FED WILL DO ABOUT ITS INTEREST RATE GUIDANCE(SINCE DECEMBER 2012 THAT IT WOULD NOT CONSIDER RAISING SHORT-TERM RATES UNTIL THE JOBLESS RATE DROPPED TO AT LEAST 6.5 PERCENT,BUT THE UNEMPLOYMENT RATE HAS ALREADY DROPPED TO 6.7 PERCENT) EVEN OFFICIALS WHO PREFER AN EARLIER RATE HIKE WANT THE FEDS POLICY-SETTING COMMITTEE TO AVOID SURPRISES THAT COULD LEAD TO MARKET TURMOIL.
Posted on: Wed, 19 Mar 2014 05:26:11 +0000
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