The economist from Deutsche Bank, Torsten Slok, believes that it is very unlikely that Federal Reserve officials will disrupt markets with an unexpected surprise. And still, we will know the decision of Fed only after the two-day meeting with BOJ that started this Wednesday.
Analysts do not think that representatives of Fed will risk everything and raise the interest rates, especially after the negative economic data for August. It went lower than they expected, and during the last interview, Lael Brainard from Fed cut the possibility of the new interest rate hike.
The main intrigue during this meeting, probably, will be the decision that will make Bank of Japan. They developed huge buying assets program and added there a new target for the long-term interest rates. Their main target is to reach 2 percent of inflation. They want to restore its economy. And as representatives of BOJ repeated many times during different press conferences, they are ready to take all the measures to stimulate the national economy.
As officials from Japanese Banks has assured, they will buy more long-term bonds from the government. And now they are changing their previous target of monetary easing, by accepting the policy of trying to control yield curve. They believe if they will be able to buy the bonds from the government, and keep at the same, almost zero level 10-year bond yields, it will save their economy from bankruptcy.
Official statement from the rates committee in Fed will be released today at 2 p.m. And 30 minutes later, Janet Yellen will give the press conference.