FOMC

The Federal Open Market Committee is expected to raise rates and will release a new dot plot. Analysts tell what they see.

Issuance this week is down from last week's $15-plus-billion new-issue calendar, partly due to the FOMC meeting.

With the Fed chair focusing on inflation, the markets have increased the odds of a September rate hike.

Jeffrey Cleveland, Managing Director and Chief Economist at Payden & Rygel, will discuss the FOMC meeting, the new SEP and Chair Warsh's press conference.

"New Fed chairs often face unexpected monetary system challenges and bond investors want to be reassured that the Fed will be serious about addressing those challenges," D.A. Davidson's James Ragan said.

The new Fed chairman has emphasized policymakers' commitment to tackling inflation since he took office in May and said the number one objective is to get monetary policy right.

Kevin Warsh set the table for change. Marvin Loh, managing director at State Street, discusses the FOMC meeting and Warsh's press conference.

The Federal Open Market Committee enters a new phase when it meets this week as Kevin Warsh takes over as chair.

Federal Reserve Vice Chair for Supervision Michelle Bowman said Friday that she believes price growth is still heading toward the central bank's 2% target when factoring out one-time shocks such as tariffs and elevated oil prices.

The FOMC meeting will be interesting as Kevin Warsh takes the chair. KBRA Chief Strategist Van Hesser will review the meeting, the presser and the new dot plot.

"The market is starting to feel a little bit on the heavy side," said Jamie Iselin, head of municipal fixed income at Neuberger Berman. "The Treasury market has been leaking higher as, I think, people are getting concerned that the conflict in the Middle East is going to [last] longer."

With no rate change expected, analysts look at Fed chair nominee Kevin Warsh and how investors should position.

José Torres, senior economist at Interactive Brokers, breaks down the FOMC decision and Fed Chair Jerome Powell's press conference.

"A slightly less hawkish decision than had been anticipated," said Art Hogan, B. Riley Wealth chief market strategist.

With no rate change expected, analysts are watching the new Summary of Economic Projections and the statement for insight into the panel's thinking.

Sean Snaith, Director of the Institute for Economic Forecasting at the University of Central Florida, will provide insight into the FOMC meeting.

Analysts were pleased that a known quantity with bona fides was the pick, but Warsh may bring about changes in the Fed that have some concerned.

Warsh, who served on the U.S. central bank's Board of Governors from 2006 to 2011 and has previously advised Trump on economic policy, would succeed Jerome Powell when his term at the helm ends in May.

Over the past five years, January has seen a relatively stable market tone, said Jeff Timlin, managing partner and head of municipal bond investing at Sage Advisory.

Analysts don't expect a rate cut at this meeting, but offer thoughts on the year ahead and the to-be-named Fed chair.