Fed Might Shift to a More Two-Sided Approach to Future Policy Guidance -- Market Talk

Dow Jones13:43

0543 GMT - The Federal Reserve's FOMC will most likely keep the Fed funds target range unchanged at 3.50%-3.75% and shift to a more two-sided approach to future policy guidance, BBVA analysts Javier Amador and Ivan Fernandez say in a note. Concerns about downside risks to the labor market have eased, reducing one of the key motivations behind the Fed's rate cuts last year, they say. "The case for maintaining an easing bias has weakened materially as labor market downside risks appear to have diminished, while inflation progress has become less convincing," they say. The Fed's Wednesday meeting will also provide the first indication of how Chairman Kevin Warsh intends to balance his policy preferences with the need to preserve institutional confidence, the analysts say. (emese.bartha@wsj.com)

(END) Dow Jones Newswires

June 16, 2026 01:43 ET (05:43 GMT)

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