Bloomberg Surveillance: Fed Day

The Federal Reserve is expected to raise interest rates by a quarter-percentage point today, its first hike since 2018.

The move is widely anticipated by markets and is seen as a sign of the Fed's confidence in the economy. The central bank has been signaling for months that it would begin to raise rates this year as inflation has picked up and the labor market has tightened.

The Fed's decision will be closely watched by investors, businesses, and consumers.

A rate hike could have a number of effects, including slowing economic growth, raising borrowing costs, and boosting the value of the dollar. The Fed will also release its latest economic projections today, which will provide insights into its outlook for the economy and inflation.

Here are some key things to watch for in the Fed's announcement today:

• The size of the rate hike. The Fed is widely expected to raise rates by a quarter-percentage point, but there is some chance that it could opt for a larger hike.
• The Fed's economic projections. The Fed's economic projections will provide insights into its outlook for the economy and inflation. Investors will be looking for any signs that the Fed is becoming more or less optimistic about the outlook.
• The Fed's press conference. Fed Chair Jerome Powell will hold a press conference following the announcement. Investors will be listening closely to Powell's comments for any insights into the Fed's thinking.

The Fed's decision today will have a significant impact on the economy and financial markets. Investors should be prepared for volatility in the markets following the announcement.