WASHINGTON (AP) — The Latest on the Federal Reserve’s monetary policy meeting (all times local):
5:10 a.m.
Financial markets are largely subdued as investors remain cautious ahead of the Federal Reserve’s announcement of its monetary policy meeting.
At the end of its two-day meeting on Wednesday, the Federal Reserve is widely expected to announce it will begin to reduce its enormous bond portfolio, which reached $4.5 trillion. The move will gradually increase long-term borrowing rates.
While the decision to shrink the Fed’s balance sheet is much expected, when and how the Fed will manipulate its target for short-term interest rates is less clear. After leaving its benchmark rate at a record low for seven years after the 2008 crisis, the Fed has modestly raised the rate four times since December 2015 to a still-low range of 1 percent to 1.25 percent.
Asian stock indexes were little changed, with Japan’s Nikkei up 0.1 percent, while in Europe Germany’s Dax was 0.2 percent higher. Futures for the Dow and S&P 500 were both flat.
The dollar was also trading in narrow ranges, edging down to 111.50 yen from 111.58 yen the day before.
