Business Maverick: Stocks Halt Rebound Before Historic Fed Decision: Markets Wrap

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Stocks fell after disappointing economic data, with traders bracing for the biggest Federal Reserve hike since 2000 and awaiting more clues on how aggressively the central bank will tackle inflation.

Federal Open Market Committee

is expected to raise rates by a half point at the conclusion of its two-day policy meeting on Wednesday, and also announce plans to reduce the size of its bloated balance-sheet. The panel will issue its statement at 2 p.m. in Washington. Powell will hold his first in-person press conference in two years 30 minutes later.

JPMorgan Chase & Co.’s chief Jamie Dimon said the Fed should have moved quicker to raise rates as price pressures hit the global economy. The central bank should target inflation of 3% or 4% rather than focusing on tightening policy to the degree needed to ease annual price increases to its current 2% goal, Nobel laureate Paul Romer noted.

 

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