Traders and analysts are weighting in on what to expect from the upcoming FOMC meeting that concludes on Wednesday. The will leave its interest rates unchanged, confirming its “patient” approach to policymaking as the has adopted a more dovish position since the start of 2019.
Markets will focus on the forecasts provided by policy makers in the so-called dot plot. It is expected that the Fed will signal just one hike in 2019 (or no hike at all) and one more in 2020 instead of forecasting two rate rises this year and one in 2020.
If so, the dollar could get under the additional downside pressure against major counterparts. But as a more dovish scenario has been mostly priced in already, the potential decline could be short-lived and limited.