The Federal Reserve's first policy meeting since Donald Trump won the election wraps up Wednesday, and analysts say the Fed is almost certain to raise interest rates for just the second time in a decade—though they also said Trump was almost certain to lose the election. Beyond the expected rate hike, market-watchers are hoping the Fed will give some clues as to whether it plans to step up the pace of interest rate hikes next year to keep the economy from overheating and driving up inflation. The Fed is expected to release forecasts and market data at 2pm EST, followed by a press conference from Fed Chair Janet Yellen at 2:30pm. A roundup of coverage:
- The AP reports that a rosy forecast for the economy will be a strong predictor of more rate rises in 2017. One big clue will be whether the word "roughly" is dropped from last month's statement that "near-term risks to the economic outlook appear roughly balanced," which would signal an improved forecast.
- The Wall Street Journal predicts that if rates do go up, the Fed will tweak its policy statement to drop last month's statement that the case for rate increases has "continued to strengthen." Analysts will be watching to see whether the Fed predicts an unemployment rate next year lower than the current 4.6%, which is below the 4.8% that was considered "full employment" in September.