The Federal Reserve is likely hinting at its meeting next week that it is moving towards scaling back monthly asset purchases and make a formal announcement in November. DXY up +0.14%, EUR USD down -0.11%
- The survey of 52 economists also forecasted the U.S. central bank would not interest rates near zero through 2022 before delivering two-quarter point increases by the end of the following year.
- The Federal Open Market Committee meets for two days starting Tuesday and will issue a policy statement at 2 p.m.
- Two-thirds of economists surveyed expect the bond-buying announcement at the Fed’s Nov. 2-3 meeting, with more than half seeing the tapering starting in December.
- Powell will still be at the helm for that policy normalization, who expect President Joe Biden will renominate him for another four-year term after his current tenure as Fed chair expires in February.
- The policy group is expected to hold rates near zero and continue the monthly purchases of $80 billion Treasuries and $40 billion in mortgage securities.
- Officials have committed to maintaining bond purchases until the economy shows “substantial further progress” on inflation and employment.