3 ways that the Fed could go:
1. refrain from taking further measures for now, once again saying that it stands ready to act if needed. This is the worst option for equities.
2. Fed could extend Operation Twist. This would be better than doing nothing, but it is unlikely to lead to a sustained rally in equities or other risk assets
3. FOMC could announce a full-blown, brand new programme of Large Scale Asset Purchases. This is what the market is hoping for, and this is also what equity investors have been pricing in recently.
http://www.fx360.com/commentary/david/7833/us-preopen-call.aspx
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