STOCK MARKET WATCH -- Monday, 15 December 2014

[Demeter]

25. Fed faces big decision over a few choice words By Jonathan Spicer

http://www.reuters.com/article/2014/12/15/us-usa-fed-idUSKBN0JT0G720141215?feedType=RSS&feedName=businessNews

Federal Reserve officials will decide this week whether to make a critical change to their policy statement that would widen the door for interest rate hikes next year and effectively bet the United States will continue to shine in a gloomy global economy.

In one of the last major wild cards for financial markets in 2014, the U.S. central bank's policy-setting committee is to issue the statement and fresh economic forecasts on Wednesday at 2 p.m., following a two-day meeting. Fed Chair Janet Yellen will then hold a news conference at 2:30 p.m.

The U.S. economy has strengthened and jobs have been created at a faster-than-expected clip since the Fed's last meeting in October, when it repeated that benchmark rates were unlikely to rise for a "considerable time." Officials will have to decide whether to replace that phrase despite below-target U.S. inflation and economic weakness in Europe and Asia.

Top Fed officials have suggested mid-2015 is a reasonable time to start tightening monetary policy after six years of near-zero rates, and financial markets generally agree.

JANET YELLEN IS LOOKING STRESSED OUT IN THE PHOTO

http://s3.reutersmedia.net/resources/r/?m=02&d=20141215&t=2&i=999410880&w=580&fh=&fw=&ll=&pl=&r=LYNXMPEABE087