Wednesday, May 9, 2007

Expect a late day market move

Today the FED speaks at 2:15 EST PM and the key question is, where is the fed leaning? The data as of late clearly shows a slowing US economy but also shows inflationary pressures above the Fed's comfort zone. I think it is clear the Fed will stand pat on interest rates this period, but I tend to think they may surprise with some verbage indicating there may be a future RATE INCREASE. This would most likely drive the market lower possibly to the tune of 2 to 3%. The Fed is clearly atleast to me more concerned about inflation and not growth. I will be interested to hear their verbage in their address. Pay attention to the market starting at about 2:15.

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