The Fed's meeting is the big deal for markets in the coming week, and it is widely expected to send a message that investors could find bullish.
The Fed's meeting is the big deal for markets in the coming week, and it is widely expected to send a message that investors in both bonds and stocks could find bullish.
The Fed is expected to hold interest rates steady, but it is also expected to issue a new forecast with fewer rate hikes and a slower economy. The Fed also is likely to announce the end of its operation to unwind its balance sheet, but economists are divided on which month this year it will actually end the program.
"This could be an interesting week," said Art Hogan, chief market strategist at National Securities. He said it should be positive for stocks if the Fed reduces its forecast for rate hikes and delivers on expectations. "It could be neutral or perhaps even negative. What more can they say? You might see some people selling the fact," he said. Christopher said he sees the market as stretched, and it could sell off. But then, there could be a buying opportunity.
Economists see the Fed reducing its forecast for two rate hikes to one or even none for this year. They also expect it to say it will end its program to reduce the balance sheet, but they don't agree on whether that happens in June, September or closer to the end of the year.
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