Markets are waiting for the Fed’s decision

Federal Reserve Chairman Jerome Powell, wearing a face mask, testifies before the House of Representatives Financial Services Committee during a hearing on oversight of the Treasury Department and Federal Reserve response to the outbreak of the coronavirus disease (COVID-19), on Capitol Hill in Washington, U.S., June 30, 2020. Tasos Katopodis/Pool via REUTERS

The stock’s futures fell slightly on Tuesday evening, with investors waiting to benefit from the regular session. September Monetary Policy Statement of the Federal Open Market Committee (FOMC) And remarks by Federal Reserve Chair Jerome Powell. Everyone is ready to give more insight into the assessments of the economic activity of the central bankers during the epidemic.

FOMC’s September policy statement is due to be published on ET on Wednesday at 2pm and then Powell will comment about half an hour later. Central bank officials had earlier telegraphed that rates would remain at zero-bound for at least the next two years, giving investors a strong indication of whether to ask policymakers to raise rates below the line. Less than a month ago, Fed officials suggested at their annual economic symposium that their new policy framework They will avoid sharp rise in interest rates to curb higher inflation.

“Chair Powell will emphasize the key message of the Fed’s new strategy; Ian Shepherdson, chief economist at Pantheon Macroeconomics, wrote in a note on Tuesday that they are pushing for growth.

“It is not clear whether the first FOMC meeting since the release of the Fed’s new monetary policy strategy will make a real difference in policy, although we think policymakers will make an immediate effort to add weight to their forward interest rate guidance,” Shepherds added. “The minutes of the July 28-29 FOMC meeting make it clear that there is little support in the committee for a result-oriented guideline, but not too much. Only ‘a number’ of participants – ‘many’ or ‘most people’ like the idea. “

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“If the Fed does not use this meeting to raise its further guidelines, the markets will focus on the terms of the statement, which we expect will accept most of the slow pace of recent data, both official and unofficial,” he said.

Fed Chair Powell’s remarks on Wednesday will also include another nudge for congressional lawmakers to pass more legislation directly targeted to help Main Street businesses and homes. Both Powell And other FOMC members have repeatedly pointed out the importance Monetary policy together with monetary policy As necessary for economic recovery.

Elsewhere, economic data scheduled to be released on Wednesday morning will include the Commerce Department’s August retail sales report, which, despite a declining rate, expects a fourth straight monthly increase. Retail sales rose back to pre-epidemic levels in July.

6:55 pm and Tuesday: The stock futures open changed slightly

Equity markets were the main move here, by 6:05 pm on Monday:

  • S&P 500 Futures (ES = f): 3,407.25, up 2 points or 0.06%

  • Dow futures (YM = f): 28,042.00, up 15 points or 0.05%

  • Nasdaq futures (NQ = f): 11,473.00, up 8.75 points or 0.08%

Federal Reserve Chairman Jerome Powell, wearing a face mask, appeared before the House Representative Financial Services Committee during a hearing overseen by the Treasury Department and the Federal Reserve’s response to the outbreak of coronavirus disease (COVID-19) on Capitol Hill. S., June 30, 2020. Routers by Tasoz Catopodis / Pool

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