Federal Reserve (Fed) chairman Jerome Powell is expected to defend the central bank's accommodative policy at a policy meeting early Thursday morning.
The Federal Open Market Committee (FOMC) will keep interest rates at almost zero and reiterate its commitment to continue buying bonds of $ 120 billion every month.
However, no quarterly forecasts are scheduled to be published in the first meeting for this year.
The Fed chairman may also be prepared to comment on the recent economic weakness, as well as the outlook for a better second half of the year.
Earlier, Powell once said that the economy is expected to perform well in the second half of this year supported by the prospect of the launch of the Covid-19 vaccine.
However, he remained adamant to continue buying bonds until there was significant progress to achieve the central bank's employment and inflation targets.
The $ 1.9 trillion stimulus package by US President Joe Biden may also be a major reason for the Fed to take a 'wait and see' approach, although at present the plan may face delays due to opposition from Republican Senators.
