While the coming week's FOMC meeting (Wed) may not be the pivotal event it was expected to be at the start of the year, it could still have an important impact on market expectations for US interest rates.
Not long ago, June was seen by many as the likely date of a first Fed rate hike. That now looks highly unlikely as a number of Fed policymakers have acknowledged.
Nevertheless, the meeting could still provide clues about the timing of the first move, the extent to which interest rates are likely to eventually rise and the Fed's assessment of the 'neutral' rate, that could be a source of market volatility, notes Lloyds Bank
