Fed statement is all about wording

The Federal Open Market Committee will release a policy statement today after day two of its July meeting. As economists see essentially zero chance of a rate increase this week, the spotlight shifts to any information the Fed will give up regarding their rate hike strategy, specifically the wording of the statement. In the June statement the FOMC stated they viewed "the risks to the outlook for economic activity and labor market as nearly balanced." Look for the word "nearly" to be removed in the July statement signaling that markets may be reaching rate hike conditions of a strong labor market and steady 2 percent inflation. The Fed is extremely particular in the wording of their statements, changing little from meeting to meeting. Although a seemingly miniscule difference, the removal of "nearly" would give significant insight into the Fed's thinking. Aside from typical inflation and labor market talk, the FOMC should also address falling commodity prices and volatility among the BRIC countries, says Voya Global.