The FOMC meets this week, and is expected to keep the target rate between 0-.25 basis points when it reports on Wednesday. The real question will be--and has been for some time now--what will the statement have to say.
We at LandColt feel the statement will say virtually the same that it did when the Fed met 6 weeks ago. As a matter of fact, Big Ben may just take that June 24th statement and just change the date to August 12th.
Just jokin'...sort of.
The infamous repeat quote may go something like this: "the pace of economic contraction is slowing", which appeared in the June statement. Here's what the April statement said: "the pace of contraction appears to be somewhat slower". Look for the August statement to have similar flavor as things are progressing in the economy; however, it is safe to say that we're crawling out of this recession--not sprinting!
More reports throughout the day.
Todd M. Schoenberger, Managing Director
LandColt Trading, Inc.