What to watch for from the Fed this week
Investors will be keen to see how policy makers change their 2017 forecasts and what Janet Yellen has to say on Trump stimulus plans
Washington — Federal Reserve leaders convene in Washington this week to discuss interest rates for the first time since the US presidential election sent long-term bond yields and equity markets soaring on bets the new administration will stimulate growth. While a quarter-point rate hike on Wednesday to a range of 0.5% to 0.75% is practically a foregone conclusion, investors will be keen to see how policy makers change their 2017 forecasts and what Fed chairwoman Janet Yellen has to tell journalists. She is due to release a post-meeting statement and new projections. Here’s what to watch for: The so-called "dot plot" graphic, which contains rate forecasts of each of the 17 officials on the policy-setting Federal Open Market Committee (FOMC), will give an early glimpse of their thinking about next steps. When the dots were last updated in September, the median projection — shared by nine of the 17 central bankers — called for two rate increases next year. That is a far cry from Decem...
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