We look for no changes in Fed monetary policy with respect to policy rates or the amount of the current asset purchase programme. The economic data have been mixed but somewhat weaker, on balance, compared with the first quarter. Hence the economic review in the FOMC statement is likely to be more cautious. The Fed’s Summary of Economic Projections will likely show some downward revisions to the Fed’s unemployment rate forecast and the near-term forecasts for inflation. Chairman Bernanke’s press conference will be the focus of the day. His remarks will be parsed closely for his view on dialling back the rate of asset ... (full story)