The Federal Reserve is set to announce its latest policy decision on Wednesday afternoon, and investors will be closely dialed into guidance on how long the Fed will hold rates near zero.
For the first time since the COVID-19 crisis took grip, the Federal Open Market Committee is scheduled to release a set of economic projections mapping out policymakers’ expectations for where several economic indicators will be over the next few years.
In focus: “dot plot” forecasts mapping out policymakers’ expectations for where the federal funds rate will be through 2022, offering some clues as to how long the Fed may keep rates between the current target range of 0% to 0.25%.
longer-term rates tilting up, the Fed may also hint at soon using tools like forward guidance (stating its intention to keep rates near-zero until inflation or employment reaches certain targets) or yield curve control (where the Fed purchases Treasuries until bond yields are below a stated level).
The FOMC statement will be released at 2 pm ET followed by Fed Chairman Jerome Powell’s press conference at 2:30pm ET.
@bcheungz.” data-reactid=”22″>Brian Cheung is a reporter covering the Fed, economics, and banking for Yahoo Finance. You can follow him on Twitter @bcheungz.
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