It is a quiet day this morning
on most markets. Investors seem to be
digesting this week’s gains and awaiting the results of the Federal Reserve
meeting that will wrap up this afternoon.
Analysts expect the bank to continue the tapering of bond purchases,
shaving another ten billion. A few
months ago the Federal Reserve was buying $85 billion of government bonds. The expected new reduction will reduce that
total to $55 Billion. Surprisingly, the
reduction has had minimal impact on interest rates. Fears were that rates would rise from extreme
lows as more supply was absorbed into the bond marketplace, but that has not
occurred. Mortgage interest rates
continue at very favorable rates and the real estate recovery continues to roll
on. Markets are near flat-line early
on. The only casualty looks to be
precious metals, with gold off another 1%.
Any surprise from the Federal Reserve is likely to be a negative to the
marketplace but the status quo seems what will be the order of the day.
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