Chris Rupkey, chief economist at Bank of Tokyo-Mitsubishi UFJ, told CNBC's "Squawk Box" that a key to the future direction of financial markets comes down to four words in the statement the Fed releases Wednesday afternoon after its two-day meeting.
"Significant slack." Rupkey said any modification to that phrase in the policy statement as it pertains to the job market would be big news. "There's a tremendous battle over whether the economy is nearing full employment."
He also cited "considerable time," another Fed favorite in describing when it might start considering an interest rate hike following the end of QE. The last time the Fed modified that phrase in 2004, he said, the central bank "hiked rates five months later."