The upcoming FOMC decision was beginning to look like a placeholder ahead of the end of QE in March and a likely rate hike then but worries about inflation followed by a market rout have heightened interest in Wednesday’s decision. At one point, there was talk about ending the taper early but that’s faded in part due to a comment from New York Fed President John Williams, who said it would end in March. Bill Ackman called for an immediate 50 bps hike but with markets now in turmoil, the consensus has converged on a steady-handed Fed that will signal a March hike and little beyond that. Goldman Sachs economists say they’re growing more concerned about inflation for two reasons. They expect four hikes this year and the start of balance sheet reduction in July . . .
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