The forthcoming regular meeting of the Federal Open Market Committee, the policy-setting arm of the U.S. Federal Reserve, will again be the focus of close attention.
The Jan. 30-31 meeting follows close on the heels of the Fed's surprise interest rate cuts this month. Cutting the target for the federal funds rate by another 50 basis points should provide a major lift for New York share prices and the dollar.
A smaller cut could be taken to indicate the Fed intends to lower the rate again in the near future. This would be a bearish signal for the stock market and the dollar.