Fed interest rate meeting in focus
A busy night for markets, dominated by a central bank meeting from the US.
In the early hours of tomorrow morning, the board of the Fed Reserve meets to decide whether to change interest rates or leave them on hold. With the economic conditions improving in the US, but still plenty of weaknesses, it will be interesting to see what the board decides. At the start of the year, Chair Janet Yellen, stated that the central bank was looking to raise rates three times this year. With two rate increases already implemented, have the FOMC seen enough in the economic data to justify their third increase this year? The jobs market is tightening while other economic indicators continue to improve, but inflation remains just under the Fed target. Wage growth also remains weak. What will be significant is the speech by Yellen, to get an update on the central bank’s view of the economy.
Elsewhere around the world, the UK is releasing crucial GDP data as well as BBA Mortgage Approvals and Index of Services. Finally, The US is publishing New Home Sales & Crude Oil Inventories figures, while Switzerland is reporting UBS Consumption Indicator and Credit Suisse Economic Expectations data.