PRE-FED THOUGHTS

PRE-FED THOUGHTS

Courtesy of The Pragmatic Capitalist

There is little reason to expect a change in the Fed’s stance at today’s FOMC decision on interest rates.   Ben Bernanke continues to give traders what they want to hear – there is more liquidity coming.  As we’ve previously mentioned, Ben can do no wrong with these statements.  Stocks are rising in front of the decision and currencies are doing their usual gig – U.S. dollar down, Euro up.

Recent readings on employment & inflation have prompted some talk that the Fed might be forced to act sooner, but if there is one thing history has taught us about Fed Chairmen it’s that they are entirely reactive to economic problems.  I don’t expect this to change.  After all, Ben Bernanke is Albert Einstein’s definition of insantiy – doing the same thing over and over again and expecting different results.