It's Bye Bye Ben as Feds Queue Up Another Possible QE Taper
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Stocks are weaker, but off the lows, ahead of the FOMC statement. Importantly, it will be Ben Bernanke's last FOMC meeting before Janet Yellen takes over as Chairman.
The Dow is down 107, the Nasdaq is down 12 and the S&P 500 is down 8.
Many are now expecting a continuation of QE tapering, with another $10 billion haircut to the monthly program possible. If the Fed does intact another $10 billion taper, and if split again evenly between treasuries and mortgages, this would move mortgage buying down to $30 billion monthly and treasuries down to $35 billion, or a total of $65 billion.
Recent stronger economic data seems supportive of another taper. However, the past week or so has brought with it weaker economic data points. The Fed, however, may views this as transitory given severe weather related issues.
The FOMC policy statement is expected at 2PM ET.
The Dow is down 107, the Nasdaq is down 12 and the S&P 500 is down 8.
Many are now expecting a continuation of QE tapering, with another $10 billion haircut to the monthly program possible. If the Fed does intact another $10 billion taper, and if split again evenly between treasuries and mortgages, this would move mortgage buying down to $30 billion monthly and treasuries down to $35 billion, or a total of $65 billion.
Recent stronger economic data seems supportive of another taper. However, the past week or so has brought with it weaker economic data points. The Fed, however, may views this as transitory given severe weather related issues.
The FOMC policy statement is expected at 2PM ET.
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