Wall Street investors have shrugged off recent worries to propel stocks to fresh all-time highs, but this week’s meeting of Federal Reserve policy makers might provide investors the clearest sign yet about the health of the U.S. economy and how the central bank is construing stubbornly low inflation.
The Fed gathering set to conclude Wednesday comes against the backdrop of a host of recent events that market participants are anticipating will factor in policy maker’s decision making: The economic impact of Hurricanes Irma and Harvey, sluggish inflation, the outlook for fiscal stimulus out of Washington, may be a just a few of the topics that are broached. (That is not even to mention the incalculable risks out of the Korean Peninsula).
Although Janet Yellen’s Fed isn’t expected to make any change to interest rates, it is anticipated that it will lay the groundwork for unwinding its $4.5 trillion balance sheet, if not announce its start. The coming asset-portfolio reduction has been an important focus for markets because of the unprecedented nature of unraveling a nearly decadeslong initiative of monetary stimulus, which could further tighten borrowing costs for individuals and corporations.
Read more at:
http://www.marketwatch.com/story/how-much-longer-this-stock-market-bull-run-lasts-may-depend-on-the-feds-next-move-2017-09-17-----
We shall know at 1pm CST.
