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Fed seen standing pat, guidance on tapering eyed

Published 07/25/2017, 08:42 AM
Updated 07/25/2017, 08:42 AM

Investing.com - The Federal Reserve is widely expected to leave policy on hold at the end of its two-day meeting on Wednesday.
The focus is expected to be on any further clues on the Fed's plans to trim its holdings of bonds in the statement it issues after the meeting.
The market odds of a further rate hike this year have weakened, with the chances of a 25 basis point rise in December standing at under 40%.
U.S. inflationary pressure remains subdued despite the economy being at or close to full employment.
In her testimony to Congress earlier this month, Fed Chair Janet Yellen appeared to link the timing of further tightening to progress on the inflation front.
The Fed's preferred measure of inflation, the core personal consumption expenditures price index stands at 1.4%, below the target of 2%.

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