- Get ready for another Fed-filled session following the recent symposium in Jackson Hole and the first meeting since Chairman Jerome Powell announced a greater tolerance for inflation.
- While the central bank is expected to keep rates on hold, the "dot plot" is likely to show interest rates will stay close to zero through the end of 2023.
- The Fed may also note an improved economy, but not celebrate it, and markets are hoping for a more accommodative stance.
- Bigger questions will touch on the scale and composition of its bond buying, and the Fed's long-term plan with its $7T balance sheet.
- The only offset for a downward dollar might be the Federal Reserve, writes John Mason, but it may be limited in what it can do, especially since there is a presidential election going on. See The U.S. Dollar Through The End Of The Year.