WASHINGTON (1/30/13)--The first meeting for the year of the Federal Open Market Committee (FOMC)--the Federal Reserve's monetary policymaking group--will end today, with economists expecting no changes to the Fed's policies set in December.
The FOMC began its two-day meeting Tuesday and will issue a monetary policy statement at about 2:15 p.m. ET today. Many expect the meeting to be a "non-event" (International Business Times Jan. 29 and NASDAQ.com Jan. 29).
Instead, the committee will likely renew its commitment to asset buying, according to economists surveyed by Bloomberg. At December's meeting, the FOMC announced open-ended asset purchases of $85 billion a month until the jobless rate falls below 6.5%. The asset buying program includes purchasing $40 billion a month in mortgage backed securities and $45 billion a month of longer-term Treasury securities (News Now Dec. 13).
The minutes for the committee's December meeting indicated that some participants believe the Fed's quantitative easing policy may end sooner than the announced timeline. Fed Chairman Ben Bernanke, however, has said that policy will continue until gains in employment are substantial (Bloomberg.com Jan. 29).
Also, today's meeting will not provide a Summary of Economic Projections, as done in past January meetings. Instead, the projections will be revised for the FOMC's March 29-20 meeting.
Watch News Now and LiveWire for updates this afternoon.