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'Fast Money' Recap: Waiting for the Fed

NEW YORK (TheStreet) -- The broader market closed near the highs of the day ahead of the statement from the Federal Reserve at the end of the FOMC meeting Wednesday.

On CNBC's "Fast Money" TV show, Guy Adami said the Fed has to do something at this point. He is expecting $10 billion to $15 billion in bond tapering. He added that Caterpillar (CAT) looks like a good short.

Brian Kelly concurred on Caterpillar and added that the risk-to-reward for holding large positions into Wednesday's FOMC meeting are not favorable.

Jim Lebenthal is a Caterpillar bull, but said he wouldn't be surprised to see some profit-taking.

Karen Finerman said she's not trying to trade around the Fed since it is too hard. She added that what she owns now she'll likely want to own in a month from now, regardless of the Fed.

Mike Khouw said that with Fed Chairman Ben Bernanke stepping down soon, he would be surprised if some sort of tapering was not initiated. However, he did say the economic numbers have not been that good and inflation hasn't moved much.

Jon Hilsenrath of the Wall Street Journal was a guest on the show and said the Fed is in a pickle because of its forecasts of both lower unemployment and low interest rates. In a healthy economy, the two do not typically coexist, he suggested.

He added that the Fed doesn't want to upset the market, which may or may not cause the central bank to taper, since the market seems to expect about $10 billion per month in tapering efforts. Many Fed officials are on the fence.

Adobe (ADBE) reported earnings and Adami said he would rather be taking profits than buying the stock.

Even though Qualcomm (QCOM) is near a 52-week high, Adami said he still considers the stock a buy.

Lebenthal called it a cash machine and thinks it will rip right through $70 to the upside. Kelly added that if that happens, $100 per share is not out of the question.

General Motors (GM) announced it was working on a long-range electric car that is $50,000 less than Tesla Motors' (TSLA) Model S, making the former stock an ideal fit for the show's "Street Fight" segment.

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