Major averages closed mixed yesterday on mixed volume, higher on the NASDAQ, lower on the S&P 500. The Federal Reserve concludes its two day meeting today. Markets are hoping Yellen, who is dovish when it comes to tightening, will keep any such hikes in the distant future, though the Fed has signaled it is looking to hike rates sooner than later, depending on the strength of the economy. Of course, this strength is highly debatable since some critical statistics have been manipulated to make the US economy appear artificially stronger.
Futures are down about 0.4% at the time of this writing as markets nervously await the Fed announcement which is due at 2 pm EST today. Investors will find out if the Fed has taken a further step toward raising interest rates by taking out the word “patient” from its current policy statement. However, Janet Yellen has been careful to point out in her previous press conference that a change in language is not necessarily indicative of an imminent change of policy. Thus the key factor today will not necessarily be what the Fed says, but how the market reacts to whatever the Fed says. Simply watch your stocks.
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