All eyes on Fed meeting

All eyes on Fed meeting

Markets will look to this afternoon’s FOMC meeting for guidance or even policy stimulus from the Federal Reserve — although analysts expect little more than revisions to US growth for now, says Reuters. The Fed will be reluctant to make long-term decisions in response to swooning markets but it could consider anything from further asset purchases, to cutting interest on excess reserves, to modifying the outlook for an “extended period” of low rates, the FT says. Most economists in a Bloomberg poll think that changes to the Fed’s extended period language is most likely. But even an Operation Twist-style focus on buying long-term debt is possible, reports FT Alphaville.