Federal Reserve policymakers are widely expected to announce they'll raise the key U.S. interest rate when they conclude their two-day meeting Wednesday. Fred Katayama reports.
Federal Reserve chair Janet Yellen and her fellow policymakers kicked off their two-day meeting Tuesday. Economists expect the U.S. central bank to raise its key interest rate by a quarter percentage point. It would be the second rate hike this year following a move in March. JPMorgan Chase head economist Jim Glassman: SOUNDBITE: JIM GLASSMAN, HEAD ECONOMIST FOR COMMERCIAL BANKING, JPMORGAN CHASE, (ENGLISH) SAYING: "The Federal Reserve sort of laid out this game plan awhile ago. The market is priced for that. If the Fed didn't go it would really confuse the market because they would wonder what's the issue and they would start thinking, oh, was it about that May job report or was it about the CPI?" A rate move would come amid mixed economic signals. Economic rowth appears to have reaccelerated, but jobs growth slowed in May, and inflation - a key focus of the Fed - has retreated. Investors will also be watching Wednesday for the Fed's outlook. Few economists expect big changes in its economic forecasts. But markets will be looking for details on the timing of the Fed's plan to shrink its $4.2 trillion portfolio of debt and mortgage-backed securities.