What to expect from the Fed
Not much, to be honest. Expect a modestly more upbeat assessment of present conditions based on the improved employment data of late, but no hints at a change in policy anytime soon.
This is probably more of a wait-and-see meeting than a meeting to set a new course, in my estimation.
Given that Bernanke was more upbeat when he spoke on the Hill a few weeks ago, a modestly more upbeat outlook likely won’t have too much impact on the markets.
If policy is going to stay lower for longer and the economy is strengthening a touch, it argues for a risk-on attitude among the markets.