Meeting

Meeting:There is still a remote possibility, but one that more and more plausible fall deeper with each tick is global equity markets.
First, one might need something more relaxing to some of the widened gap between the actual and "justifiable" to fill Funds rate. We now think that Fed officials will be two small steps rather than in this direction for the rest of the year 2011: (1) extension of the "longer period" language is not only the exceptionally low interest rates, but also the exceptionally large balance coverage (we expect that at this FOMC meeting on Tuesday), and (2) shift the balance of the composition towards longer maturities.