June 20, 2012
The odds are on the Fed extending an easing program and toughening its language, but many Wall Street players admit it’s just too close to call.
In the last several weeks, as Europe’s sovereign crisis flared and U.S. economic news simultaneously worsened, the expectations on Wall Street have ranged from no new Fed easing to the Fed potentially launching a new extraordinary, quantitative easing program at the end of its two-day meeting Wednesday.
The consensus appears to lie somewhere in between, with the most odds seemingly on an extension of the Operation Twist program that is currently scheduled to end this month. Even while some analysts question how much the Fed can ease with near record low rates, they still expect to see some action.
The Fed statement is released at 12:30 p.m. ET, followed by a 2 p.m. release of its revised forecast and a press conference by Fed Chairman Ben Bernanke.
This article was posted: Wednesday, June 20, 2012 at 8:40 am