by Kathleen Brooks
FX Street
The Federal Reserve will announce their latest policy decision on Wednesday 19th March. The market expects no change in interest rates at this meeting, instead the focus will be on the Federal Reserve’s updated economic projections and the Dot Plot, along with Jerome Powell’s press conference.
What a difference a few weeks make. At the last FOMC meeting at the end of January, hopes were high that the US economy would continue to grow at a strong pace at the same time as inflation moderated. However, the outlook for the US economy has changed dramatically in just a few weeks. The backdrop to this meeting includes a global trade war and a stock market rout. The S&P 500 has fallen by 7% since the last FOMC meeting, and the Nasdaq 100 is lower by more than 9%.