The Fed and FOMC

An article by Gus    No Comments

Good morning everyone, it has not been a boring mornign by any means today. While the U.S. markets have calmed down dramatically and actually come up a bit, Dow +200, the Fed meeting today is the highlight of the week. Just two weeks ago this meeting was suppose to be just a standard gathering nothing big was expected out of it, but with a +500 drop last Thursday and a +600 drop Monday this FOMC will be extremely important. The forex markets will definitely react to what the Fed will do to stop the thrashing of the U.S. markets and help the dollar find solid footing. While the crazyness hasnt affected the dollar too much, I am afraid that all the effort put into Gold over the past few days, crossing $1,700, will be damaging to currencies later down the road.

While I am not expecting them to say QE3 will start immediately I do see them hinting towards it at the bare minimum. It is important for them to convey a message stating that the expect to continue supporting the economy.

I will check in with everyone after the statement, scheduled for 2:15pm ET

Gus

Also a picture a friend sent me which I found hilarious: