So what is the FED going to do tomorrow?

[GoUSC]

I am saying:

1. No rate change

2. No (or very minor) comments about the credit market.

Bernanke wants to step out of Greenspan shadow and also seems to be focused on the Fed’s role of controlling inflation. He has made statements before to the effect of the FED not being responsible to save face for bad investment decisions made by Wall Street.

What say you!!!

[LA_Renter]

The dollar is critically low. If he comes across too dovish the US Dollar index may fall below 80, I think FED actually measures the dollar with another index but that one is sitting at a 30 year low. The media doesn’t talk about it much but I guarantee you the FED is taking that into consideration. Most of the economic data came in softer than expected but not enough for any FED action. The credit crunch is more of a market event than anything to do with monetary policy but he will probably incorporate some type of language they are aware of the problem and will act accordingly if it begins to harm the economy of which right now it is not (yet) in their view. Bernanke believes in market corrections, this one has only gotten started so he will stay the course. Thats my take.

[LA_Renter]

The dollar is critically low. If he comes across too dovish the US Dollar index may fall below 80, I think FED actually measures the dollar with another index but that one is sitting at a 30 year low. The media doesn’t talk about it much but I guarantee you the FED is taking that into consideration. Most of the economic data came in softer than expected but not enough for any FED action. The credit crunch is more of a market event than anything to do with monetary policy but he will probably incorporate some type of language they are aware of the problem and will act accordingly if it begins to harm the economy of which right now it is not (yet) in their view. Bernanke believes in market corrections, this one has only gotten started so he will stay the course. Thats my take.

[LA_Renter]

The dollar is critically low. If he comes across too dovish the US Dollar index may fall below 80, I think FED actually measures the dollar with another index but that one is sitting at a 30 year low. The media doesn’t talk about it much but I guarantee you the FED is taking that into consideration. Most of the economic data came in softer than expected but not enough for any FED action. The credit crunch is more of a market event than anything to do with monetary policy but he will probably incorporate some type of language they are aware of the problem and will act accordingly if it begins to harm the economy of which right now it is not (yet) in their view. Bernanke believes in market corrections, this one has only gotten started so he will stay the course. Thats my take.

[Alex_angel]

nothing just like he has been doing all along. He wants the economy to get more in the shitter before he prances in and saves the day.

[Alex_angel]

nothing just like he has been doing all along. He wants the economy to get more in the shitter before he prances in and saves the day.

[Alex_angel]

nothing just like he has been doing all along. He wants the economy to get more in the shitter before he prances in and saves the day.

[LA_Renter]

He might prance in but “saving the day” is a whole other matter.

[LA_Renter]

He might prance in but “saving the day” is a whole other matter.

[LA_Renter]

He might prance in but “saving the day” is a whole other matter.

[HereWeGo]

Based on the financials, the market expects reassurance that the Fed stands ready to assist if necessary.

[HereWeGo]

Based on the financials, the market expects reassurance that the Fed stands ready to assist if necessary.

[HereWeGo]

Based on the financials, the market expects reassurance that the Fed stands ready to assist if necessary.

[cr]

My guess is the FED will say “core inflation is under control, job levels are good, and they are keeping an eye on the credit crunch”, and do nothing.

Translation: food/energy are still burdensome, unemployment is growing as all things associated with RE tank, but some jobs are resurfacing in retail and service inndustries, and the credit tsunami is landing, but since we’ve done nothing for a year, we can’t do anything now.

Lowering rates kills the dollar, raising them kills business.

The FED is between a rock and a hard place.

[cr]

My guess is the FED will say “core inflation is under control, job levels are good, and they are keeping an eye on the credit crunch”, and do nothing.

Translation: food/energy are still burdensome, unemployment is growing as all things associated with RE tank, but some jobs are resurfacing in retail and service inndustries, and the credit tsunami is landing, but since we’ve done nothing for a year, we can’t do anything now.

Lowering rates kills the dollar, raising them kills business.

The FED is between a rock and a hard place.

[Author]

Posts