The Federal Reserve conclude their two-day meeting on Wednesday, in which officials are expected to keep rates unchanged at +2.5% after raising rates for a fourth time back in December 2018. The Fed has signalled that future rate rises will be data driven on a ‘wait and see’ basis, however with many economic data releases delayed due to the longest partial government shutdown in history, the Fed has limited data to go on. Markets have priced in two Fed rate hikes in 2019, with a dovish stance expected from the FOMC, this comes as the rumour mill suggests the Fed are considering tapering their ongoing asset-shedding operation, a move which will only increase concerns for an economic slowdown. Eyes will be fixated in Fed chairman Jay Powell’s post-meeting press conference with markets keen to assess his tone whilst looking for any sign that the recent hiking cycle has at least been paused.
