Fed Day

In a couple of hours when I
am eating more than my recommended caloric intake for the day, the Federal
Reserve will release it’s monthly (+/-) monetary statement.  Economists
across the country anticipate that the Fed will continue to taper
its Bond buying activities by another $10B to $55B per month, as well as
to rescind on the previously affirmed 6.5%-Unemployment-Rate-as-a-threshold-to-begin-to-raise-the-interest-rates
that they directly control.  The reason for the latter is because the
Unemployment Rate is no longer considered a true measure of
the labor participation rate in the US–hence the growing
interest in the Labor Participation Rate study.

I expect the Fed to keep their Cost of Funds rate at 0.25%.  If they
do NOT taper to $55B/mo, rates will come down…but don’t hold
your breath.