June 22. FOMC announcement today.

June 22.  FOMC announcement today.  The market traded yesterday as if Greece’s gov’t would survive the vote of confidence which it indeed did.  However there is another parliamentary vote next Tuesday on details of increasing austerity measures which will also be important with respect to fund disbursements from the IMF and EU.

–The previous FOMC meeting and initial press conference was in late April.  In the first paragraph of the statement the committee noted high energy prices but said that inflation and inflation expectations were low.  Crude oil is down about $20 in the ensuing time frame. The employment picture has actually deteriorated.  Though the Fed is ending QE2 this month, the statement leaves a little wiggle room, in that the Committee is prepared to adjust holdings as necessary.  In sum, this meeting is likely to be dovish.

Posted on June 22, 2011 at 12:06 pm by alexmanzara · Permalink
In: Eurodollar Options

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