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Strategies & Market Trends : Classic TA Workplace -- Ignore unavailable to you. Want to Upgrade?

To: marginmike who wrote (34391)	3/18/2002 2:34:22 PM
From: bcrafty	Read Replies (1) \| Respond to of 209892

Maybe its selling ahead of the FOMC 9:02 AM FED TALK: Heading into tomorrow's FOMC meeting, the fed fund futures market is pricing in essentially no chance of a rate change. With no meeting next month, the April contract reflects expectations for the March meeting and is trading at 1.775%, just above the current target of 1.75% and pricing in about a 10% chance of a rate hike tomorrow. While a rate hike would be a shock, the market is looking for the Fed to move to neutral in terms of the risks to the economy. The Fed has viewed the risks as skewed toward economic weakness since the Dec. 19, 2000 meeting, and has never held a neutral stance since modifying how the board communicates its stance back in January 2000. According to the January 2000 modification, a move to a neutral stance would include the following in tomorrow's statement: "Against the background of its long-run goals of price stability and sustainable economic growth and of the information currently available, the Committee believes that the risks are balanced with respect to prospects for both goals in the foreseeable future." The Fed runs one of three variations of this "risks" statement after every meeting, with the italics indicating the phrase that will change if they adopt a neutral bias. If not, the statement will continue to read that "the committee believes that the risks are weighted mainly toward conditions that may generate economic weakness in the foreseeable future."