With the Federal Open Market Committee meeting today, an
announcement is expected this afternoon and the markets are on pause right now,
awaiting direction from the Fed. Gold is
down significantly, while oil is down slightly as are most commodities. Interest Rates continue to trend down
slowly. Volatility is slightly up, but
mostly flat. Europe news is generally
mild and not a player today so far. The
markets are down slightly, but it seems like mild profit taking after quite a
run up over the last few days. Things
should remain quiet as we await Fed action.
It seems to me that we can expect some jawboning, and an extension of
Operation Twist, which has been effective in lowering long term mortgage rates
to historic lows thus far. An extension,
in my mind, would have a very marginal effect at this point, not like another
quantitative easing program. When the
Fed tries to wean the economy and the markets off of quantitative easing…look
out below!
