The main question ahead of the key Fed meeting on Tuesday is whether the world’s largest economy can survive on less government monetary stimulus. Data shows the economy is still luke-warm but politics will encourage the Fed to slow quantitative easing.
Chair Ben Bernanke gave strong hints in August that the Fed would decide to begin tapering its stimulus in September. If he reneges it could destabilize markets and jar investors.
A final decision will be reached on September 18 at the conclusion of the two-day meeting of Federal Open Market Committee (FOMC).