Analysts describe financial markets as “nervous” leading up to this week’s Federal Reserve Meeting.
The Fed is expected to reach a decision on whether or not to raise interest rates for the first time in years.
Bloomberg reports the decision may boil down to what happens in financial markets during the next few trading days.
Volatility in currencies, bonds and stocks has soared to multi-month highs in recent weeks, threatening the central bank’s plan for tightening monetary policy for the first time since 2006.
USA Today reports that strong data does exist in support of the increase.
However, if the Fed views the recent financial market turbulence, sparked by a slowdown in China’s economy, as a sign of market instability that could override the strong data and keep the increase on hold.
The Fed will announce its decision Thursday at 2:00 p.m. Eastern time.
