Every body knows that the US economic data is not good. This week the US index is bearish, for me.
The FOMC is set this week to cut another $10 billion from its asset purchase program. The statement itself will most likely point toward additional confidence that the first quarter slowdown was an aberration, and may even point to signs that inflation has bottomed and is headed higher. Both will give the Federal Reserve more confidence in their existing forecasts. The forecasts will likely be very similar to those issued in January, albeit with some modifications. The output forecast may be adjusted to account for Q1 weakness, while the unemployment forecast is likely to be edged down once again. The latter is more ... (full story)