(As of 7:20 am PST)
More positive data continues to flow in as investors
await this afternoon’s highly anticipated announcement from the Federal
Reserve. This time the upbeat data came
from the housing sector. After a strong
recovery this year for housing, things continue to improve. Housing starts in November surged by 22.7% to
1.09 million annualized, the highest rate of growth since February 2008. Improving data
over the past few months has many investors and money managers expecting the
Federal Reserve to begin tapering its stimulus program before the end of the
year. The much talked about debate has
had markets on pins and needles the past couple weeks. At 2 pm EST today the Fed will announce its
policy decision on when and how much to begin tapering. Many analysts believe the Fed will continue
to purchase $85 billion per month in bonds, while others maintain the stance
that the recently improving economy is ready for a slow, steady exit from quantitative
easing. Market volatility has been low
and recent fluctuations surrounding the taper have more to do about the
uncertainty of the taper than the taper itself, one could argue. How will the markets bid Mr. Bernanke
farewell? I guess it depends on what he
says at 2 pm EST today.
No comments:
Post a Comment