http://www.bloomberg.com/news/2014-10-28/fed-decision-day-guide-fomc-seen-focusing-on-too-low-inflation.html
Here’s what to look for when the Federal Open Market Committee releases its policy statement at 2 p.m. today in Washington. Federal Reserve officials won’t provide new economic projections, and Chair Janet Yellen isn’t scheduled to give a post-meeting press conference.
-- With the FOMC poised to halt bond purchases, ending its third round of so-called quantitative easing, policy makers may want to underscore they are troubled by falling inflation and price expectations.
The Fed will “express concern about consistent undershooting of inflation,” said Jonathan Wright, who worked at the Fed’s division of monetary affairs from 2004 until 2008 and now teaches economics at Johns Hopkins University in Baltimore. The committee will “go into reverse to some extent,” restoring language it dropped in July expressing a warning that low inflation poses a risk to economic performance.
The committee in September said it “judges that the likelihood of inflation running persistently below 2 percent has diminished somewhat since early this year.” Thirty-three of 62 economists in a Bloomberg survey said they expect the FOMC to retain that language at this week’s meeting.
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