Good Morning. Today is the day we get either a change to monetary policy or another threat to change. I could be wrong, but I believe we will not see a change to policy in regards to expanding the balance sheet. There could be a change to language for the duration of ZIRP, but my hunch is there will be no official launch of any form of QE.
Rather, I believe the Fed will show through their economic forecasts, released prior to the press conference that growth rates have stabilized or slightly improved, thus “giving them the cover” to remain on the sidelines with policy changes. But, they will be “prepared to act if warranted.” That language will always be included in all press releases.