What to Expect from the Fed Today?

The Federal Reserve will on Wednesday release a new set of economic projections. 

Policymakers will also update their views on when the Fed should raise its benchmark short-term interest rate from the current near-zero level, with markets focused on whether the core group of central bank officials shift a first expected rate increase into 2023 from 2024, where it stood as of the last round of projections in March. 

This week’s two-day meeting is likely to mark the start of what the Fed hopes will be a smooth and gradual exit from the policies put in place to fight the pandemic, with its $120 billion in monthly asset purchases eventually reduced and then eliminated over time, followed later by a slow climb in interest rates. 

The interest rate projection is the most sensitive forecast of the meeting and is likely to affect USD currency pairs and metals.   

Have your trading charts ready for to capitalise on any price movements.  

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