There are expectations of a 10 billion dollar reduction of U.S. treasury purchases. There is no lack of drama surrounding tomorrow’s Fed: Who will take over for Ben Bernanke? And what, if any, immediate impact does today’s CPI have on the Fed? Certainly the lack of any inflation would suggest a more dovish approach from the FOMC; however, consider that the Fed is also running out of days in this all-important, “will they or won’t they” taper month of September. It’s the higher inflation picture that would make the Fed’s decision to slow asset purchases down, even slightly, more clear and supported. Interestingly ... (full story)