The much-awaited Federal Reserve Open Market Committee (FOMC) meeting regarding the core monetary policy will be ending today afternoon. Per the CME Group FedWatch tool, there is a 100% chance that interest rates will be left unchanged this time as well.
The central bank’s decision will not be a surprise for the markets as in the June FOMC meeting, interest rates were left at 0.00-0.25%, with indications that it will be at the same level through 2022.
Further, in late August, the Fed announced a major change in its inflation policy, seeking to support the fall in unemployment level by targeting an inflation that averages 2% over time.
In order to balance for the periods of weaker performance by allowing inflation rates to go beyond 2%, the Fed might be looking to keep interest rates at near zero level for an even longer period, likely till 2023.