In the week: FOMC meeting, interest rates

The highlight of the economic calendar next week will be the two-day meeting of the monetary policy committee of the Federal Reserve.

Not long ago a rate hike at the March 15-16 was considered almost a certainty. Now the members of the Federal Open Market Committee is almost certain to hold off on another rate hike, probably until June meeting of the Fed. The implied probability on the basis of future federal funds stood at 49% for up June.

two-day meeting of the Fed ends with the release of a policy statement at 2:00 pm Wednesday and central bankers are widely expected to keep interest rates at their current range of 0.25% -0.50%. Fed President Janet Yellen will hold a press conference at 2:30 pm Wednesday.

"The Federal Reserve will probably keep the target rate for federal funds rate unchanged at 0.25-0.50%, as low inflation and instability in global financial markets persist," analysts at IHS Global Insight he said in a note on Friday.

The Fed will also release economic forecasts on Wednesday that should provide some clues for analysts and the various market participants regarding the strategy of rising long-term rates by the Fed.

That strategy might be different than forecast in December, when the Fed raised rates for the first time in nearly a decade, based on optimism that a market jobs tightening would raise wages of American workers and push inflation higher towards the target of 2% of the Fed rate. Based on that forecast rose, he suggested that the Fed would raise rates four times in 2016.

The labor market in the US continues puffing, but a number of other problems - mostly related to the slowdown in economic growth abroad - has poured water on the optimism of the Fed, making four increases in additional fees this year extremely unlikely.

Two key inflation rates are also next week. The producer price index, which measures wholesale inflation is out Tuesday, and consumper price index, which measures prices paid by consumers is held on Wednesday. February retail sales are out on Tuesday.

New York, William Dudley, president of the Fed, will speak on Friday and undoubtedly was asked to comment on the rise rate decision the Fed and monetary policy in the future.

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