Today the Federal Reserve is beginning an important two-day meeting. Among the many topics to be discussed there, perhaps the most interesting issues deal with the last measures to end the consequences of the 2008 financial crisis.
Over the course of the crisis, in order to help the economy the Federal Reserve acquired what is now worth 4.5 trillion dollars of assets. Fed chief Janet Yellen would ideally like to start a plan to decrease this substantial portfolio. Most analysts seem to agree that $3 trillion is where the Fed would feel most comfortable, but the question is how the markets would behave during such policy changes.
There has also been a lot of speculation about further interest rate increases by the Federal Reserve. Investors had been hoping for a new hike every time the Fed had a meeting this summer, but to no avail. Now the expectation is that there would not be a further increase, at least not until the end of the year.
All that’s left for now is to wait and see, so we just need to follow the news about the Fed meeting closely.
