Fuels and precious metals led commodities lower and Treasuries rose before the Federal Reserve announces its plans for monetary policy tomorrow. The Standard & Poor’s 500 Index fell while the benchmark gauge of equity volatility extended gains to a two-month high.
There’s about a 60 percent chance that the Federal Reserve will announce a reduction in its asset purchase program tomorrow, according to Mohamed El-Erian, chief executive officer of Pacific Investment Management Co.
Here’s what to look for when the Federal Open Market Committee releases its statement today at 2 p.m. after a two-day meeting in Washington. The panel will also provide new economic forecasts, and Federal Reserve Chairman Ben S. Bernanke will hold a news conference at 2:30 p.m.
The U.S. Securities and Exchange Commission was presented with a 337-page staff proposal to require the $2.5 trillion money-market fund industry to float share prices or hold more capital and curb redemptions, according to a person familiar with the proposal.