What to expect from FED today?
Most of the bank economists are expecting from FED to end its bond buying program today, or to end QE3. That’s what the market is expecting as well, but there is question about short term Interest Rates and for how long they will keep it near zero? They like to say that they will keep it near zero for a ‘considerable time’ and deley everything for December meeting.
The U.S. unemployment rate has fallen to 5.9%, but Inflation missed the Federal Reserve’s target of 2% for more then two years. Having consistently missed that goal for more than two years, some officials are growing frustrated. Some say low inflation is another sign of slack that affords the Fed room to continue keeping rates near zero.
How will market react on the news today, and what the officials will decide I don’t know? But, there could be a sharp moves and I don’t suggest to trade during this important decisions, at least until you find out all decisions and see the numbers. Be patient traders!