SubscribeDaily Futures Commentary June 24, 2009
Wednesday, June 24, 2009
Today the Fed concludes its two-day FOMC meeting. The consensus is for the Fed to leave interest rates unchanged at 0 to .25%. The key to this report will be the Fed’s statement. This is what traders are debating.
One school of thought has the Fed aggressively increasing its purchase of government debt and mortgages in an effort to keep downside pressure on interest rates. Another school of thought says the Fed will not make any changes to its quantitative easing plans.
Some investors will be looking for the Fed to set a hard calendar date for an interest rate hike while others believe the Fed will leave the date open.
This report and statement will have a huge impact on the markets following its release around 1:15pm CDT. This is because of the current state of the economy and the fact that the Fed will not have another meeting until August.
The Treasury Department will have another Note auction today. Yesterday’s auction was well received. Traders expect today’s auction to be successful. Based on overnight action, the September Treasury Bonds and Notes are called lower. …
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