This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Here's What To Watch For Wednesday From The Fed

The Fed could stress anew that 6.5 percent unemployment is merely a threshold, not a trigger, for any rate increase. Which means it might choose to keep the benchmark rate at a record low for an extended period even after unemployment has dipped below 6.5 percent.

That's especially true if unemployment is dropping mainly because more people have stopped looking for work, rather than because employers are hiring lots of people. The government doesn't count people as unemployed once they stop looking for a job.

__ECONOMIC OUTLOOK

This is one of four meetings each year when the Fed updates its economic outlook, based on individual forecasts of board members and regional bank presidents. It's likely to downgrade its outlook as it takes account of reality: The U.S. economy hasn't grown as fast this year as the Fed had expected.

In their previous forecast three months ago, Fed officials predicted that the economy would grow between 2.3 percent and 2.6 this year and between 3 percent and 3.5 percent next year. Most economists think the economy will have grown 2 percent â¿¿ at best â¿¿ this year and roughly 2.6 percent next year.

The Fed will update its forecasts for unemployment and inflation, too.

Besides updating its outlook for 2013, 2014 and 2015, the Fed will offer its first economic predictions for 2016.

These numbers will be watched for any hint that the Fed has grown more or less optimistic. More optimism could mean the Fed feels the economy could handle future rate increases relatively soon. Less optimism could signal that any rate increases remain further off.

â¿¿ BERNANKE NEWS CONFERENCE

This will be a major event â¿¿ and not just because it will likely follow the Fed's announcement of a pullback in bond buying. It's also Bernanke's next-to-last news conference as chairman before his term ends Jan. 31. (His final news conference will follow the Fed's last meeting of the year in mid-December.) Early this week, Lawrence Summers withdrew from consideration for the chairman's job, leaving the Fed's vice chair, Janet Yellen, as the leading candidate. Obama could announce his choice later this month.

2 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG

Markets

Chart of I:DJI
DOW 16,351.38 +293.03 1.82%
S&P 500 1,948.86 +35.01 1.83%
NASDAQ 4,749.9790 +113.8740 2.46%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs