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Here comes the Fed...

Aug 25, 2024, 16:08 IST
REUTERS/Gary CameronU.S. Federal Reserve Board Chair Janet Yellen testifies before the Senate Banking Housing and Urban Affairs Committee on Capitol Hill in Washington February 27, 2014.The Federal Reserve will be out with a statement on its latest monetary policy decision at 2 p.m. ET Wednesday.

No one is anticipating any major changes. However, folks will be on the lookout for the Fed's appraisal of recent economic data.

"Given the data-dependency of monetary policy, it is important for the FOMC to describe the economic status in a way that it can manage market expectations," said Lewis Alexander, Nomura's chief economist, in a note.

"The weaker-than-expected March employment report and core CPI might demand further elaboration regarding the committee's intentions to overlook weak Q1 data," he added.

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Most market-watchers expect the Fed will raise rates again at its June meeting. Even with a weaker-than-expected jobs report in March, policymakers can look at the labor market's relative, long-run strength as evidence for continuing hikes.

The World Interest Rate Probability data provided by Bloomberg shows the market thinks there's a 69.6% chance the central bank will move in June.

The US dollar index is little changed at 99.09 as of 11:39 a.m. ET.

Refresh this page for updates at 2 p.m. ET for the Fed's decision and accompanying statement.

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