Move over, Crimea. The Federal Reserve is set to release its policy statement this week, which is going to redirect investor attention away from geopolitical issues and back to monetary ones.
Most economists believe that tapering – now two months in the works – will continue, barring any significant setback in the economic recovery. But the key this month is going to be how the Fed adjusts its forward guidance on policy. In recent statements, the Fed has gone out of its way to assure markets that there is no economic number that will force the Fed to switch into a rate-raising mode.