NEW YORK (TheStreet) -- The Federal Open Market Committee meeting used to be important. Now, it's predictable, according to Keith Bliss, senior vice president of Cuttone & Company.
He told TheStreet's Debra Borchard the Federal Reserve isn't going to change its monetary policy. Market participants should be prepared for the knee-jerk reaction on Wednesday near 2:00 p.m. EDT when the Fed releases its statement at the conclusion of its two-day meeting.
The Fed has reiterated that its monetary policy would be dependent on data. But there's one problem: The economic data are getting worse, not better, Bliss said.
He added that along with inflation and labor targets not being met, a little-known indicator called the velocity of money recently hit its lowest point in 50 years. The velocity of money is a measurement of how fast the U.S. dollar turns over, or moves along, within the economy.
Without quick turnover or a lot of banking and commerce, the economy remains sluggish, he said.
Bliss suggested that perhaps the Fed should raise interest rates slightly. The move would allow the natural markets to recalibrate and figure everything out. It should also allow the economy to spur its own growth.-- Written by Bret Kenwell in Petoskey, Mich. Follow @BretKenwell