The Federal Open Market Committee is expected to hold rates unchanged in a 2.25% to 2.5% target range as it publishes its latest decision this afternoon. Economists expect both the monetary statement and press conference to highlight a slower approach to rates, as the government shutdown has left policy makers without much economic data ahead of today’s decision.
The latest development in the trade war between the United States and China continues in Washington today with talks between Liu He and Robert Lighthizer. Both sides have until March 1st to agree on a lasting truce to avoid further escalation of tariffs.
The ADP employment report will be closely watched today, alongside pending home sales figures for December are also due. Currently the yield on the benchmark 10-year Treasury rose 1 basis point to 2.721%, while 30-year bond yields remained flat at 3.043%.
German Preliminary CPI posted a decline of 0.8% earlier this morning, as the eurozone economy has slowed in recent months. There was some positive data for Europe today as German GfK Consumer Confidence estimating a score of 10.8 for February came in higher than the revised reading of 10.5 points for January.