FOMC expected to taper further at meeting

|By:, SA News Editor

The FOMC is due to start the first day of a two-day meeting today, with WSJ Fed watcher Jon Hilsenrath believing that the bank will ignore the turmoil in emerging markets and cut its bond-buying program by another $10B a month to $65B.

Firstly, it's not clear that the sharp declines in Turkey's lira and Argentina's peso, for example, are due to the Fed's decision to taper, especially because both countries have deep domestic problems.

It's also not certain that the overseas rout is a problem for the U.S. economy, which is what the Fed is mandated to consider.