Word from the Wall Street Journal’s chief Fed watcher this morning, that perhaps the result of the FOMC meeting will be no or little change in the wording for how long the Fed intends to keep interest rates at zero, put the bulls in a good mood and stocks rallied from the opening bell. We’ll get the actual wording of the statement tomorrow afternoon, so it will be interesting to see if traders guessed right today.
By the close, the Dow Jones Industrial Average was up 100 points to finish the day at 17,131. The S&P 500 was up 14 points to close at 1998. Gold was up a fraction to trade at $1235 per ounce, while oil was up $1.86 to trade at $94.78 per barrel WTI.
Back to the FOMC meeting. It will be interesting to see if the Fed feels like the economy is improving enough to simply change the verbiage on whether they will maintain a zero bound Fed Funds rate “for a considerable amount of time”. They aren’t going to change rates now, but perhaps, if they see enough improvement, they will indicate that rates will change in a “reasonable amount of time” or something like that. Can you imagine, that tomorrows trading and market participants reaction might hinge on a couple of words. We’ll let you know what the Fed decides.
Have a nice evening everyone.