Daily Commentary by Larry Baer 11.2.2011: After a multi-day rally mortgage interest rates are largely moving sideways this morning as investors wait for the Fed to make clear whether - or when -- it will again ease monetary policy. The Federal Open Market Committee will conclude their two-day monetary policy huddle and will issue their traditional post-meeting statement at 12:30 p.m. ET.
Just to make sure market participants have no confusion as to the specifics of the Fed's current monetary policy strategy -- Fed Chairman Bernanke will hold a brief press conference at 2:15 p.m. ET.
Despite recent market chatter suggesting the Fed will soon launch another round of quantitative easing - Mr. Bernanke and his fellow central bankers will probably choose to remain on the sidelines through the end of the year. The Fed will take a brief "pause-for-the-cause" to either see convincing evidence of the start of a sustainable period of economic growth -- or evidence of new recessionary threats. If my assessment proves accurate today's post-meeting statement and the Fed Chairman's follow-up press conference are unlikely to contain the "stuff" that notably lower mortgage interest rates are made of.
I will provide updates on my website as soon as possible following the conclusion of each of these two events.
THE MARKET IS ALWAYS RIGHT! . YOU AND I ARE SOME OF THE TIME
