If there ever was an FOMC meeting that reflects the markets dangerous addiction and dependence on Fed largesse, it is today where the 4pm close will literally be determined by how much incremental money printing or other steps the Fed will embark upon. This sad state of affairs is solely due to the actions of the dynamic Dr. Feelgood duo of Greenspan and Bernanke where every economic ill, every market cry and whine was met by some sort of monetary easing that just encouraged more borrowing and more market manipulation. On the bright side, hopefully we’re reaching a point in the process where the markets are finally realizing that the Fed is running out of options and will thus lessen its reliance on it. Also, keep in mind at 2:15, the US Treasury has embarked on QE3 for the Fed already by dramatically lowering market rates over the past few weeks. What I think is most likely today is the FOMC will announce that they will extend the maturities of the Treasuries they buy in their reinvestment program and that will be their attempt to keep a larger foot on longer term interest rates.
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