This week, all eyes will be on this year’s first Federal Open Market Committee (FOMC) meeting. Led by Jerome Powell, the FOMC sets the direction of monetary policy (i.e. raising or lowering interest rates). While no policy changes are likely, we expect Powell to give us the Fed’s outlook for the economy, pressure senators who recently pushed back on a fiscal stimulus relief package, and reinforce the message that the Fed will not be tightening monetary policy any time soon.
When the FOMC meets Tuesday and Wednesday, it will likely be a low-key event with little surprises. We expect the Fed to leave current policies unchanged given the uneven economic recovery that we continue to see in the near-term (weak spending on services and still elevated unemployment levels). On the other hand, the post-meeting press conference may be a different story.
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Commentaries are published by Cetera Investment Management LLC, an SEC registered adviser owned by Cetera Financial Group. Cetera Investment Management provides market perspectives, portfolio guidance, model management, and other investment advice to its affiliated broker-dealers, dually registered broker-dealers and registered investment advisers.
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