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For the Fed on Wednesday, no change in policy is expected and given that this is not a meeting that includes a post-meeting conference or a fresh summary of economic projections, it’s likely that this will be less of a market mover, according to analysts at Deutsche Bank.  

Key Quotes

“Our economists expect any changes to be perfunctory and cosmetic, though they note that the Fed could acknowledge some recent softness in the housing data. As a complement to June’s removal of forward guidance language, the statement could also include some language, such as the phrase “for now” featured in Powell’s recent monetary policy testimony.”

“In the view of our economists, such verbiage would have the effect of including uncertainty into their gradual rate hike mantra. In our colleagues view this would de-emphasise forward guidance and reiterate that their actions are data dependent.”