It’s A Fed Day!

E.M.Smith
"...I’m expecting no interest rate change (so little impact on bonds) but ‘happy talk’ about more Q.E. on the cards (and that spooking some of the market a little with more future inflation fears). With $100 Trillion of shortfall on Social Security (once you figure in the demographics) over the next decade or two and a similar $100 Trillion of shortfall in Medicaid and similar ‘entitlement’ programs, IMHO, the only choice our government and The Fed has is to “inflate away the debt” longer term. So I’m pretty sure they will say “QE2″ is being prepared to sail if needed. And that will cause commodities to rise and stocks to fall. We’ll see if I’m right when The Fed announces."