Watch The Fed

FOMC (Federal Open Market Committee) Meeting Announcement

From Bloomberg:
Market Consensus Before Announcement
The FOMC announcement for the August 10 FOMC policy meeting is expected to leave the fed funds target unchanged at a range of zero to 0.25 percent. Traders will be picking apart the statement for any wording hinting of additional quantitative easing and for changes in the Fed's view of the economy.


The FOMC is the policy arm of the Federal Reserve. It sets the overnight rate that banks pay to each other, and in this way influences interest rates. It can also influence liquidity in credit markets by changing the Fed Funds rate.

We are particularly interested in the direction the Fed will take over the next two or three meetings. It is our view that they will "stand pat" with few changes to current policies on Tuesday's meeting.

The September 21 meeting may be another matter.

By that time, we expect that the slowing economy will manifest itself in plain sight. If so, expect quantitative easing to resurface.

By October and November, it is our view that QE will be in full swing, with the Fed buying its own bonds, in effect, printing money to "stimulate" the economy.

Not what an investor would call dollar friendly policy.