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There are increasing expectations about the FOMC meeting today and tomorrow.

A lot has changed since the last meeting. The question is: how is that going to affect the Fed’s outlook?

Virtually all analysts agree that it’s too early to see a change in monetary policy. However, the latest economic data suggests it’s time for Chairman Powell to change his tune at the press conference later.

And that could get the markets riled up!

There are a couple of important issues that might be discussed.

One of the less obvious ones, because it’s more technical, might have the biggest impact: The possibility of the Fed adopting yield-curve control (YCC), which is currently being used by only Japan and Australia.

What is YCC?

Normally, the Fed sets a short-term interest rate, which is the Federal Funds Rate.

The argument is that as it’s close to zero, it has little effect on stimulating the economy. But, if the Fed buys bonds strategically to push down interest rates in ...

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