Waiting for the Fed

Some good news for the markets as both 3M and Proctor and Gamble posted good earnings. Will this be enough to drive the markets higher? I think today will be a somewhat flat day as everyone waits to see what the Fed is going to do with interest rates tomorrow. The current thinking is that the Fed will hold the line on rates.

The Fed has, in the past, talked of the economy being stronger than they thought so there is a slight danger that they may do something stupid an raise. Actually the chance is probably a little larger because you can always count on senile old men to do something stupid, especially on the highways. But I think that they should lower by a ¼ point as there have already been a number of companies forecasting weaker growth for the next few quarters. Too bad that the Fed would rather push the US into a recession rather than have a vibrant economy with 4 or 5% inflation. For some strange reason the Fed would rather see people unemployed and no inflation. I don’t understand why since they make so much money that 4 or 5% inflation really wouldn’t be a problem for them.

Oh well, the bottom line on today is to expect a flat day as the market waits for the Fed rate announcement tomorrow at 2:15pm.