FOMC Preview: Expect only limited changes to the statement - GS

Goldman Sachs’ (GS) economists provide a brief sneak peek on what to expect from the FOMC monetary policy decision due at 1800GMT later today.

Key Points:

Expect the FOMC to keep policy unchanged

Only limited changes to the statement

Expect constructive comments on economic activity

Thinks Federal Reserve officials will view the slowdown in reported growth last quarter as temporary

Expect a brief acknowledgement of the softer March core inflation data

Says the balance of risk assessment is to remain unchanged

Expects the characterization of current policy as accommodative to remain unchanged also

Expects the FOMC statement will probably leave out any explicit mention of fiscal policy "given the lack of incremental clarity on the legislative outlook since the March meeting"