Fed Meeting This Week

The Federal Reserve is meeting today and tomorrow, ostensibly to decide on interest rate policy. However, with the rate effectively at 0%, and quantitative easing measures still in force, there is little for the Fed to discuss in terms of immediate interest rate policy. Instead, it is likely that the Fed will focus on the future.

Right now, there are some concerns about future inflation. Currently, inflation is near 0%. With unemployment still high and the economy still in recession, there is little in the way of economic growth. However, once the economy picks up, inflation is expected. Some believe that hyper-inflation may even be on the way.

What is likely is that the Fed will make a policy announcement for the future, as well as provide its view of the current economic situation. Doubtless, part of the Fed's meeting this week will be devoted to an exit strategy from economic stimulus, and talk of the measures that can be taken to prevent high inflation.