According to MarketWatch reports that the Federal Reserve will make some hawkish changes to its statement this week and confirm that another rate hike is coming in March.
The members of the Fed’s interest-rate setting body will want to send “some modest signal” that a rate hike is very likely at the March meeting, said Thomas Simons, a money market economist with Jefferies.
According to Michael Pearce, senior U.S. economist at Capital Economics, the signal of a March rate hike can be small. “It doesn’t need to be much,” he said.
The market was already anticipating a March rate hike. For the last month, expectation of a March rate hikes “have been a one way bet, with the street grinding expectations higher,” said Pearce.
The Fed will meet for a two-day meeting ending on Jan. 31 and issue a statement at 2 p.m. Eastern. There is no press conference and the Fed won’t update its economic forecast. So the statement is all the market will have to pore over. Minutes of the meeting won’t come until Feb. 21.