The Federal Reserve will hold arguably its most important policy meeting in years on Sept. 19-20, with markets waiting to see if the central bank raises rates yet again and/or begins to unwind its massive balance sheet.

Former Dallas Fed staffer Danielle DiMartino Booth, author of Fed Up, doesn't think the central bank will announce an rate hike at the meeting, but said the Fed could pull the trigger on shrinking the balance sheet.

The central bank said in a recent communique that it will start unwinding its $4.5 trillion balance sheet "relatively soon." Many investors took that as a hint that September will be the likely start date. 

The Fed has raised interest rates just four times since the Great Recession ended. However, below-target inflation could slow down the pace of future increases. 

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