All the day’s economic and financial news, including an eagerly awaited Federal Reserve policy meeting
- Latest: Janet Yellen’s press conference begins
- BREAKING: Fed leaves interest rates unchanged
- Balance sheet reduction starts in October
- One more rate hike expected in 2017
- What to watch for from the Fed today
Q: The Fed is locked into reducing its balance sheet, and raising interest rates in a gradual fashion. So what will you do if economic conditions don’t turn out as you expect?
Yellen denies that the Fed is ‘locked in’ to a particular path. We are assessing incoming data, and these plans are subject to change.
Yellen says that the Fed could “stop its balance sheet rolloff” in future, if adjusting interest rates is “insufficient” to respond to changes to the economic outlook.