Federal Reserve policymakers are not going to
give a clear signal of where rates are headed after their meeting on Tuesday,
economists said.
Economists expect a "neutral" statement that won't prepare markets
for a rate hike in the near term.
"The next policy statement is unlikely to include a signal to financial markets that the FOMC is prepared to raise interest rates at the next meeting [on September 16]," wrote Brian Fabbri, chief U.S. economist at BNP Paribas.
"Should the actual rate climb above the Fed's upper limit, it would
forestall any chance that there would be a tightening in monetary policy,
especially during a Presidential Election Year," he said.
But at the same time, the central bankers will be reluctant to back
away from its tough talk about inflation, Fed watchers said.
