Fed expected to conclude their December meeting on Wednesday afternoon

The Fed has been expected to conclude their meeting for December on the afternoon of Wednesday by giving a signal that it is not in any hurry for doing anything to change the neutral stand that it has on the interest rates.

However the Chairman of Fed, Jerome Powell is expected to promise that the central bank is going to be willing to do whatever is necessary for keeping the levels of liquidity high and lending rates at a steady pedestal during the year end which is a time when the market of short-term lending is usually under a lot of extreme pressure.

The Fed in its statement post meeting is not going to be expected to make any changes that are significant from the meeting that it had held previously. It is however expected to release the forecast of interest rate and the latest projection of the economy simultaneously. The projection is likely to show a bit of improvement especially after the increase in payroll for November of 266,000.

Experts feel that the investors and analysts are going to probably be looking most carefully at the changes which will probably take place in the forecast as a few numbers have turned out to be very good. An expert named Drew Matus has said that he expects that the Fed is going to hold on for one more year and he sees that the messaging is not going to change. He feels though that the rate of unemployment may drop as they have been dropping without a pickup in the inflation. The Fed according to him has been flexible when it comes to market repo and they will stay that way.

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