Hello traders everywhere! Adam Hewison here, co-founder of MarketClub with your mid-day market update for Tuesday, the 19th of March.
What Will The Fed Do?
The Fed will be meeting today and tomorrow to decide the future course of action for interest rates. I suspect the blowup in Cyprus, which could be the tip of the iceberg, will be weighing on policy makers' minds and that the Fed will hold steady. The Fed is on a tricky course to try to juice up the market and the economy with low interest rates. The strategy of keeping interest rates low and pumping money into the system to the tune of $4 billion every trading day has many detractors, who claim the cost of doing this is just too expensive and the nation cannot afford it. It would seem to this market observer that the Fed and the market are both addicted to cheap money. When interest rates begin to rise, and they will, expect to see a radical change in sentiment towards the equity markets as inflation will once again rear its value robbing head to a whole new generation of investors. Continue reading "Today's Video Newsletter: The Fed meets today and tomorrow … what to expect"
