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Equity futures rise as markets await the Fed’s decision



Federal Open Market Committee (FOMC) September Monetary Policy Statement and comments by Federal Reserve Chairman Jerome Powell. Each is set to provide additional insight into central bankers’ assessments of economic activity during the ongoing pandemic. “Data-reactid =”

; 16 “> Stock futures rose slightly on Tuesday evening, extending gains from the regular session as investors awaited the Federal Open Markets Committee (FOMC) September Monetary Policy Statement and comments from the Federal Reserve Chairman Jerome Powell, each of whom intends to provide additional information on assessments of central bankers’ economic activity during the ongoing pandemic.

Less than a month ago, Fed officials suggested at their annual economic symposium that their new policy framework it would allow them to avoid raising interest rates upfront to avoid higher inflation. “data-reactid =” 17 “> The FOMC September Policy Statement is expected to be released Wednesday at 2pm ET on Wednesday and will be followed by Powell’s remarks about half an hour later. With central bank officials who previously had telegraphed that rates would remain at the zero limit for at least the next two years, investors will be looking for clues as to what might prompt politicians to hike rates down. Less than a month ago, Fed officials suggested at their symposium economic year that their new policy framework would allow them to avoid raising interest rates upfront to avoid higher inflation.

“President Powell will highlight the key message of the Fed’s new strategy; they are pursuing growth,” Ian Shepherdson, chief economist at Pantheon Macroeconomics, wrote in a statement Tuesday.

“It is unclear whether the first FOMC meeting since the release of the Fed’s new monetary policy strategy will bring about a real change in policy, although we believe it is unlikely that policymakers will immediately seek to add weight to their interest rate guidance,” he said. added Shepherdson. “The minutes of the FOMC 28-29 July meeting make it clear that results-based guidance has some support within the Committee, but it doesn’t appear to be overwhelming; only “a number” of participants, not “many” or “most”, support the idea “.

“If the Fed does not use this meeting to bolster its forward guidance, the markets’ focus will be on formulating the statement, which we expect will recognize the slowdown in momentum evident in much of recent data, both official and unofficial,” he he said.

Powell and other FOMC members have repeatedly stressed the importance of fiscal policy in tandem with monetary policy as essential for economic recovery. “data-reactid =” 25 “> Fed Chairman Powell’s remarks Wednesday will likely also include another push for congressional lawmakers to pass more legislation aimed directly at helping businesses and families on Main Street. Both Powell and other FOMCs members repeatedly stressed the importance of fiscal policy in tandem with monetary policy as essential for economic recovery.

Elsewhere, economic data set for release Wednesday morning will include the Department of Commerce’s August retail sales report, which is expected to show a fourth consecutive monthly increase, albeit at a decelerating pace. Retail sales rose to pre-pandemic levels in July.

6:05 PM ET Tuesday: The opening of stock futures has changed little

Here are the main moves in the stock markets, at 18:05. ET Monday:

  • S&P 500 Futures (ES = F): 3,407.25, up 2 points or 0.06%

  • Dow Futures (YM = F): 28,042.00, up 15 points or 0.05%

  • Nasdaq Futures (NQ = F): 11,473.00, up 8.75 points or 0.08%

Federal Reserve Chairman Jerome Powell, wearing a face mask, testifies before the House of Representatives Financial Services Committee during a hearing on oversight of the Treasury Department and Federal Reserve response to the outbreak of coronavirus disease (COVID -19), on Capitol Hill in Washington, USA, June 30, 2020 Tasos Katopodis / Pool via REUTERS

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