(As of 7:10 am pacific)
It’s a surprising day today
because nothing is happening. Most
markets and commodities are hovering around unchanged, ignoring economic news
and awaiting an announcement by the Fed as to whether a QE3 (Quantitative Easing
Phase 3) is on the table. Wholesale
prices came in a whopping 1.7% higher, led by gasoline prices which surged
13%. Jobless claims increased more than
expected and some downgrades in the computer chip sector have been offset by a
surging Apple stock, in light of excitement related to the release of the
Iphone 5. The feeling is that the Fed is
on the bubble, trying to weigh stubbornly high unemployment rates against other
more positive economic developments, with potential inflation a background
factor. The imminent fiscal cliff might
also have an effect as the Fed tries to hold ammunition for future financial
shocks. All eyes are on the Fed and the
markets will likely react strongly one way or the other after the announcement.
