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Decision Day for the Fed: Watch What They Say, Not What They Do

It's decision day for Federal Reserve policy makers, who will likely say more than they do.

It's decision day for Federal Reserve policy makers, who will likely say more than they do. The market is betting the Fed will keep rates steady, and will focus instead of the statement released following the FOMC meeting. 'I think with the statement they want to keep options open,' said Eric Stein, co-director of global income and a portfolio manager at Eaton Vance. 'If the data improves, if the data stabilizes at least, hopefully improves, at least I think there's a decent chance they hike rates at the December meeting. If the data goes the other way and deteriorates, then they'll push rate hikes off to 2016.' Stein said that since the September meeting, there's has been some weakness in U.S. economic data. However, he believes there is underlying strength in the U.S. economy. 'Generally speaking the labor market is very healthy, the economy is recovering, we're headed in the right direction,' said Stein. He also thinks some worries about global uncertainty in places like China have eased.

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