eFXdata reports that Nordea Research discusses its expectations for this week's FOMC policy meeting.

"There will be no rate changes at this week’s FOMC meeting. The Fed has clearly dismissed the idea of going to negative (NIRP) while also stating that the target range will remain unchanged “until the economy has weathered recent events and is on track to achieve maximum employment and price stability”  These goals are Fed miles off from achieving at the moment," Nordea notes. 

"Overall, we think there are many tough questions to be answered at next week’s meeting. Whether the Fed wants to answer them all is doubtful. The state of the economy is so fragile that the Fed probably sees the risks/uncertainty of introducing (unconventional) forward guidance now as too big. Instead, Powell will likely reiterate his words from last time that the Fed is ready to do more if needed and that this “more” may for now be linked to the liquidity and credit facilities," Nordea adds.