Saturday, April 23, 2011
Fed, Bernanke on Investors' Radar Next Week
As earnings results for the first quarter are coming in for high net worth firms in technology and energy industries next week, eyes are on the Fed and their policy response to the new information. Some speculators think due to favorable first quarter numbers, interest rates will rises. But on the other hand, some speculators believe there will be no interest rate changes by the Fed, rather a continuation of the "quantitative easing" policy under a new name since speculators have a negative connotation for that phrase. Either way, investors and speculators alike will be watching and listening to what Bernanke has to say in the upcoming week.
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There is no doubt that a tremendous amount of focus is going to be on the Federal Reserve's statements in the coming week. Speculators and investors always pay extremely close attention to the statements issued by the Fed, as there is possibility to take advantage of situations that they believe the Fed has projected will come in the future. The FOMC is meeting on Tuesday and Wednesday, after which Bernanke will be having a news conference. This news conference on Wednesday is going to be the primary focus of investors and speculators.
I think the Fed is going to address about the rising oil price that is creating inflation and people are expecting inflation. I expect that the gold and other precious metals to rise. The Fed needs to do something about the potential inflation. Obviously the Fed can't decrease the money supply because they need the consumers to keep spending and so forth. We'll see how things unfold as time passes by.
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