US FOMC INTEREST RATE

Forex News Analysis US FOMC Interest Rate 03/13/12

Time: 02:15 pm (NY time)

Today’s FOMC Meeting will probably not surprise the market as much… Prepared to be disappointed if you are expecting another round of bond purchases, or Quantitative Easing, as current

market climate has improved and it may just be premature to expect another round of QE3; on the other hand, if you are expecting the Feds to be hawkish and perhaps raise speculations on rate hikes, think again!  Bernanke is on a mission to keep rates long until 2014, just a few months of positive NFPs is NOT ENOUGH for big Ben to change his mind… 
As a matter of fact, looking at the central tendencies and ranges in economic projections released during the last FOMC meeting, I believe there is a very little chance for the FOMC to say anything else, but to stick to their own projections…
However, with the recent positive over 200K NFP figures and the sharpest rate of drop in history for the US Unemployment rate from 9.8% down to 8.3%, the Fed will probably refrain from any immediate QE announcements, but don’t expect the Fed to put it on the backburner, as QE3 is still very alive and well in my opinion, just not for this meeting, or the next.