Fed Might Shift Communication Toward Two-Sided Risk Outlook -- Market Talk

Dow Jones13:17

0517 GMT - The Federal Reserve is expected to shift its communication moderately toward an explicitly two-sided risk outlook--rate cut or rate hike--while the fed-funds rate is set to be unchanged at 3.50%-3.75%, DZ Bank's Christian Lenk says in a note. DZ Bank expects a virtually unanimous decision to keep rates on hold at Wednesday's rate decision, but as usual, "it remains entirely possible that the ultra-dovish Stephen Miran could once again break ranks and advocate for a 25-basis-point rate cut," the analyst says. The economic situation in the U.S. remains a combination of an energy-price-driven surge in inflation and a "low-hire, low-fire" labor market, in which weak labor-market data doesn't automatically signal recessionary trends, Lenk says. (emese.bartha@wsj.com)

(END) Dow Jones Newswires

April 28, 2026 01:17 ET (05:17 GMT)

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