Fed preview: The risks are all one-way

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Like last Friday’s employment report, the risks headed into tomorrow’s FOMC decision and quarterly press conference are all one-way. The market is set-up for disappointment unless the Fed replaces Operation Twist with outright purchases of Treasuries on a dollar-for-dollar basis, maintaining $85 bln of asset purchases and the longer end of the yield curve.

If the Bernank disappoints Mr. Market, look for a dollar rally and for a slide in equities and commodity currencies.

 

2012-12-11T14:36:59+0000

All|Americas|Central Banks|Regions

Fed

Jamie Coleman

2 Comments

  1. jamie, what do you think? dollar rally up or down.

  2. Jamie, what are the odds here for tomorrow?

    70% disappointment
    60 %
    50%

    ????

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