Meeting Outlook
BofA Securities anticipates that next week's Federal Reserve meeting will likely deliver few new policy signals. The balance of risks around the Fed's dual mandate has not shifted significantly since December, according to the report.
Limited Policy Direction
The market has already priced in much of the expected trajectory for monetary policy, making the focus of the meeting likely to be on the tone and language used by Chair Jerome Powell during the press briefing.
Powell Expected to Highlight Economic Fundamentals
Analysts suggest Powell may emphasize the relationship between current strong economic data and the neutral interest rate. Investors should pay particular attention to his assessment of the decline in the unemployment rate in December, which could influence the pace of future rate hikes.
- Key focus: Unemployment rate and interpretation of the neutral rate
- No significant change in policy expectations
- Powell likely to avoid clear policy hints