Any thoughts boys and girls? We got 2 hours to kill.
Highly likely a non-event but "shock and awe" does have the word "shock" in it so I feel obliged to be here.
https://multimediafiles.kbcgroup.eu...unrise_market_commentary_0900dfde8028b215.pdf
"The FOMC meeting might pass without too much fuss, even if surprises are
never excluded. In its Jackson Hole speech, Bernanke said that the conditions for
stronger growth in 2011 were still fulfilled. He also said that the FOMC had tools to
address deflation risks (which he didnât see) or a significant deterioration of conditions
in the economy and labour market. He made clear that the Fed would not be
afraid to use these tools (more QE) if needed. Since the speech, the dataflow was
better-than-expected and suggested stabilization in the economy. Given the
opposition to further measures by a number of regional Fed governors and Bernanke
probably looking for a broad agreement on future policy changes inside his FOMC
Committee, we donât expect the Fed to announce new measures today. Acting now
might unsettle markets as investors might see the Fed action as evidence the
economic outlook is dire or deflation risks higher than thought. We suspect the
Fed wants to avoid such an interpretation. So, the FOMC statement might be broadly
similar to the August one. No big changes in the economic and inflation assessment,
confirmation that rates may remain at their exceptional low level for an extended period
of time and that the coupon receipts and the maturing MBS paper will be reinvested
in US Treasuries."
Highly likely a non-event but "shock and awe" does have the word "shock" in it so I feel obliged to be here.
https://multimediafiles.kbcgroup.eu...unrise_market_commentary_0900dfde8028b215.pdf
"The FOMC meeting might pass without too much fuss, even if surprises are
never excluded. In its Jackson Hole speech, Bernanke said that the conditions for
stronger growth in 2011 were still fulfilled. He also said that the FOMC had tools to
address deflation risks (which he didnât see) or a significant deterioration of conditions
in the economy and labour market. He made clear that the Fed would not be
afraid to use these tools (more QE) if needed. Since the speech, the dataflow was
better-than-expected and suggested stabilization in the economy. Given the
opposition to further measures by a number of regional Fed governors and Bernanke
probably looking for a broad agreement on future policy changes inside his FOMC
Committee, we donât expect the Fed to announce new measures today. Acting now
might unsettle markets as investors might see the Fed action as evidence the
economic outlook is dire or deflation risks higher than thought. We suspect the
Fed wants to avoid such an interpretation. So, the FOMC statement might be broadly
similar to the August one. No big changes in the economic and inflation assessment,
confirmation that rates may remain at their exceptional low level for an extended period
of time and that the coupon receipts and the maturing MBS paper will be reinvested
in US Treasuries."
