FOMC meeting starting tomorrow, with a little innovation…

The Federal Open Market Committee will start its periodic meeting tomorrow schedule to finish on tuesday, to deliberate on short term interest rates for the American economy. The rate stands at 0,25% p.a., too low and for too long… The economists and Fed Watchers are largely expecting no move on rates. This economist, me, believes they should raise rates to revive the interest on holding US dollars as one bold move to kick start the economy on psichological terms as a matter of speaking. There is one innovation this time in the FOMC meeting though: For the first time ever, mr. Ben Benanke will deliver a press conference right after the meeting resumes. That is new and that is bringing some tension to the market. What is he going to say? How is he going to say it? It might sound weird these questions but mr. Bernanke is not as eloquent as Mr. Greenspan was. That means, we are going to be watching his every move, every facial expression and we are going to be reading in between the lines of his every sentence. The innovation in itself might bring some news and the markets are waiting to check that out. The Euro has retroceded today in expectations. I, for one, will not be surprised if they bring interest rates up.

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