Investors see this week’s meeting as an easy call, with officials set to vote for leaving their policy rate unchanged for now.Outside, the conversation is quite different. Fed Chairman Jerome Powell and his colleagues are indicating that any changes will be marginal. Economists such as Coronado and Potter are looking at unconventional strategies because of the level of current interest rates. The accounts would pay the rate the Fed pays on its overnight bank lending rate. “Respect for the democratic process that created the Fed dictates that the Fed should respect those limits.”Trump’s attacks on the Fed may also be constraining the discussion.

Source: Economic Times January 27, 2020 03:11 UTC