Wall Street Manna

An irreverent look at Wall Street

Wednesday, June 24, 2009

Fed days

The WSJ has a story out, highlighting the volatility of the Fed days. The bulls always seem to find something they like, because the Fed normally gives them what they want to hear.

If there is one safe bet ahead of the Federal Reserve's policy decision Wednesday, it is that markets don't quite know what's coming.

Volatility has been the market response to every Fed policy decision since Dec. 16, when central bankers set their traditional policy tool, the federal-funds-rate target, at roughly zero and promised to keep it there "for some time."

But as the chart shows, the "volatility" for stocks is to the upside!