Interest-rate decision is due Wednesday
After historic changes last month, Federal Reserve officials this week will discuss a possible expansion of the size of its third round of bond buying and better ways to guide markets about future policy actions.
At its two-day meeting that starts Tuesday, the Fed may abandon its calendar date approach to forward guidance and adopt some form of numerical target for policy, analysts said.
And the central bank consider whether to expand its bond-buying at the end of the year to take account of Treasury purchases under its Operation Twist plan that finishes at year-end.
No final decisions are expected when the Federal Open Market Committee releases a statement at 2:15 p.m. Eastern on Wednesday. Economists will parse the summary of the Fed's deliberations to be released in November 15 for clues to what actions may come at the last meeting of the year in mid-December.
After the drama of the central bank's meeting in September, this week's meeting is viewed as less of a cliff hanger.
Last month, the Fed announced a plan to purchase $40 billion of mortgage-backed securities per month in an open-ended approach that would not be stopped until the labor market improved.Read Article