The US Federal Reserve is expected to raise their policy interest rate 25 basis points this week. The Fed will also increase the pace of its balance sheet reinvestment tapering, by increasing the unreinvested amount from $10 billion to $20 billion. We also get a new set of dot plots, which could show a change of direction in Fed policy, but will most likely remain the same. Despite all the potential activity that is going on, most analysts would consider this a relatively “ho-hum” meeting. The markets agree, based on the declining interest rate volatility. Amid this complacency, I thought I would give you three fresh perspectives on FOMC dynamics going forward, not including the very obvious changes at the Fed Chair and new Board members that need to be selected.
[The rest of this post is on Seeking Alpha: https://seekingalpha.com/article/4132468-3-fresh-perspectives-fomc]