The Federal Reserve looks like it will announce no new monetary changes at their meeting today. It is expected to release forecasts that show interest rates will remain near zero for at least the next two years.
With the recent improvement in the U.S. economy, the Federal Reserve will more than likely not announce any additional bond purchases. However, they will leave the option open in case the European debt crisis gets worse and has the possibility of affecting the U.S. economy.
The Federal Reserve has continued to say since mid last year that interest rates will remain extremely low through at least the middle of next year.
The Fed is expected to release its statement outlining its views on the economy and monetary policy shortly after lunch. Rate projections and quarterly economic forecasts will be released soon after at 2pm.
Many analysts believe the U.S. economic recovery will be affected as Europe’s economy begins to struggle even more. This could potentially force the Fed into another bond buying spree, and will more than likely focus on mortgage debt.
We’ll know more once the Fed comes out with their statement. The markets are looking better than they did right now as most investors await word on what the Fed will say. The Dow is currently down 49 points, the Nasdaq is up 16 points and the S&P is down 2 points.