“I expect the FOMC to announce a $US10 billion decrease in asset purchases, to blame the early year weakness mostly on the weather, and to express some concern about housing and also concern that inflation is too low.”
That’s from Bill McBride at Calculated Risk, and it’s almost certainly exactly what the FOMC will do on today.
Essentially, since the last Fed meeting, there’s been zero developments that would encourage the Fed to change course on its “tapering” plan, by which it reduces the pace of its bond buying each month.
As for the economy, it’s come out of a winter slump, but not blisteringly so. So the Fed can feel comfortable that the economy is improving, but not at a pace that’s worrisome or too hot.
And yes, housing data is weak (particularly starts), which is definitely one of the things that the Fed will keep its eye on.
For a longer take, check out Tim Duy’s complete FOMC preview.