Fed likely to take more cautious view of latest market turmoil

The latest slump in commodity prices, the renewed market turmoil and the apparent slowdown in fourth-quarter GDP growth are all good reasons why the Fed might ultimately decide against raising interest rates for a second time at the mid-March FOMC meeting. But that meeting is still two months away and we doubt that the Fed will want to back itself into a corner at the upcoming FOMC meeting next week, by providing a strong steer on what might happen in March.