CNBC: The Federal Reserve concludes its two-day policy meeting Wednesday, with expectations for no change in interest rates.
- However, Bank of America said the meeting will be “one of the most critical events for the Fed in some time.”
- Chairman Jerome Powell and his fellow policymakers will have to convince investors that the current policy is correct and won’t change in response to a brighter economic outlook and major progress in the Covid-19 fight.
resurgent economy, percolating inflation and a stock market ripping higher don’t seem to make much of a recipe for easy monetary policy.
But that’s the position in which the Federal Reserve finds itself.
The challenge for the central bank this week will be to explain that position to investors and assure them that even if the status quo remains, that won’t provoke policymakers to change course, nor should they.
“The basic line is, ‘Everything looks a little better, but there’s still a lot of uncertainty and we’re not going to do anything soon