Federal Open Market Committee: Live coverage

• Key insight: The Federal Open Market Committee is holding its fifth meeting of the year, its second under Chair Kevin Warsh. 
• Expert quote: "If the committee or Chair Warsh offer even an inkling of guidance, they likely will indicate that the decision between holding rates steady or hiking in September will be data dependent." — Bill Adams, chief U.S. economist at Fifth Third Commercial Bank.
• Forward Look: The FOMC will announce its interest rate decision on Wednesday afternoon. Follow our live blog for real time updates about the group's decision and Fed Chair Kevin Warsh's post meeting press conference.

The data is in. The Federal Open Market Committee just needs to figure out what to do with it. 

The Fed's monetary policy group meets this week for the fifth time this year. Its task: make sense of a messy economic environment, one in which longer term trendlines have been moving in the right direction while real time data warns of resurgent inflation.

What the FOMC does and what Fed Chair Kevin Warsh says about it could have a profound impact on financial markets and bank balance sheets. 

Specifically, inflation as measured by the Bureau of Labor Statistics' consumer price index fell from 4.2% in May to 3.5% in June while the unemployment rate dropped 10 basis points to 4.2%. At the same time, oil prices have risen on the back of renewed tensions in the Middle East and market rates are already pricing in more inflation. 

This is Warsh's second meeting as Fed chair. After spending much of his first post-FOMC press conference discussing his reform plans for the central bank — and little else — Warsh could be pressured to explain not only what the committee is doing with monetary policy, but also why. 

Then again, he could continue to opt for a less-is-more approach to communications, in which case the onus will be on banks to evaluate the economic outlook and adjust their business lines and holding accordingly. 

"If the committee or Chair Warsh offer even an inkling of guidance, they likely will indicate that the decision between holding rates steady or hiking in September will be data dependent," said Bill Adams, chief U.S. economist at Fifth Third Commercial Bank.

The Fed's interest rate decision will be announced at 2 p.m. on Wednesday, with Warsh's press conference to follow at 2:30 p.m. Watch the American Banker homepage for live coverage and analysis.