The Federal Reserve isn’t the only central bank announcing a decision next week but it will be the most watched.
Here’s a preview of what to expect in the coming days.
Fed decision
It’s finally time. The Federal Reserve begins its much anticipated two-day monetary policy setting on Wednesday and on Thursday markets get the interest date decision and forecasts at 2 pm ET. The announcement will be followed by Fed chair Janet Yellen’s press conference.
Following the gyrations in global markets, stemming from concerns on the Chinese economy, traders now see a 30 per cent probability for a rate rise next week.
Economists at Bank of America expect Fed policymakers to begin a gradual liftoff in September in response to the improvement in the US economy, however the decision will likely depend on market conditions headed into the meeting.
“Thus, recent financial market volatility and global growth uncertainties could lead the FOMC to temporarily postpone hiking,” Bank of America economists say. “In that case, we would expect the Committee to keep the October meeting “live” as a potential date for liftoff.”
Bank of Japan
Before the Fed move however markets will be watching the Bank of Japan, which is also expected to announce its latest monetary policy decision next week. Economists expect the central bank will keep the size of its current stimulus measures unchanged. The meeting will be followed by a press conference with governor Haruhiko Kuroda.
Republican debate
Republican presidential candidates will meet for a second televised debate on Wednesday. The debate, hosted by CNN in California, will include Carly Fiorina after the network expanded its criteria for the first tier debate. Ms Fiorina’s average support places her in the top 10 in polls conducted after the first debate held last month.
There will be a separate non-prime time debate for “candidates who meet the minimum threshold of 1 percent in public polling but are ranked outside the top 10″.
Greece
Greece’s political candidates enter the final week of campaigning ahead of the snap election on September 20 following the recent approval of the country’s €86bn bailout. Alexis Tsipras and Evangelos Meimarakis meet for a televised debate ahead of the vote