What to Look For At This Week's FOMC Meeting

Amid strong economic momentum, near-2 percent inflation and sub-4 percent unemployment, the Fed may send the wrong signal if it pauses policy normalization. The Fed has been slow to revise up its economic forecasts and continues to anticipate that the largest portion of the stimulus from the Tax Cuts and Jobs Act is temporary, and also seems to be understating the positive impacts of the thrust toward deregulation. However, I expect these policy changes will have a more sustained economic effect.