Federal Reserve expected to keep the rates steadyFederal Reserve has not been expected to take an action in the fund rates in the week however it is expected that they will reassure the markets about watching the coronavirus outbreak and every other uncertainty with regard to geopolitics.
Jerome Powell who is the chairman of Federal Reserve has been expected to give a briefing to the press after it had released its statement this Wednesday and in the comments which he gives, the investors are going to get the greatest insight in to the thinking of Fed. The Fed is going to begin their two day long meet this Tuesday.
They are expected to be saying something regarding the attention which they are paying to developments globally but experts feel that they would not be doing anything at this time. The experts are expecting that the Fed has been paying good amount of attention to the happenings of the Middle East as well as the outbreak of the coronavirus.
The experts said that they are looking at the global economy but at this moment it isn’t seeming like there is going to be a major affect.
There is no clarity to how serious this virus is going to become as it has already consumed many lives and further made thousands of people ill. In terms of policy, Fed has been expected to keep the rates where they are and not signal any further move. The experts feel that with the work that has been done in the last year, they will be keeping it still in this year specifically as this is a political year. They are going to stick to the wait and watch approach.