FOMC & RBNZ Preview: Use the force, Janet! FOMC Preview: Use the force, Janet! The US Federal Reserve (Fed) began its first two day policy meeting for 2016 yesterday. ATM will be watching for any signs of cautiousness expressed by the Fed as a result of recent market volatility. We believe that the Federal Reserve will try to calm markets and highlight the positives driving the US economy (e.g. Low unemployment). At the last meeting the Fed raised their benchmark interest rate by 0.25%, for the first time in since 2006. Although more hikes are likely (2-3) over the course of 2016, we think that won’t be until the latter part of the year. No movement on interest rates at this meeting is expected. The Fed will want to provide stability to markets and reiterate that their policy changes will be gradual and responsive to the economic environment around them. They have the ability to influence the direction of markets and we believe that Janet Yellen (the Fed Chairman) should exercises this power to reassure financial&...