The Fed’s two-day Federal Open Market Committee (FOMC) meeting is scheduled for this week. Here are six things that are likely (or aren't likely) to happen, according to Bloomberg:
1. Interest Rates
The Fed won’t take any direct action on interest rate policy, but it’s likely bankers will discuss the chances of a hike sometime later this year—possibly even as early as September.
2. Labor Market
The extent to which the Fed wants to raise rates later this year reflects their comfort with the current labor market.
3. Brexit Vote
Fed officials will be pleased to see how financial markets have already largely brushed off the Brexit vote, even if investors should be a bit more concerned than they appear to be.
4. Economic Growth
Fed officials are starting to acknowledge structural headwinds are heightening cyclical obstacles to the US's economic growth, increasing the chances of an incoming rate hike.
5. Global Uncertainties
The Fed’s openness to a rate hike in the near future will remain conditional, especially as officials examine mixed data and uncertainties in the global economy.
6. Presidential Race
We can expect the Fed to steer clear of the upcoming presidential election, but we can be sure it's considering global political uncertainties when it comes to future policy. [Bloomberg]
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