Fed Meeting

The Fed meets today. No change in rates is as certain as anything determined by man. The statement language "could" generate some action, though. Since the last Fed meeting, we received two favorable downticks in inflation numbers [for the core CPI and PCE] after some upticks, so PERHAPS we might get a more marginally dovish statement. If so, we could start a melt-up in PE multiple expansion as the current level of interest rates becomes more certain along with a moderate growth economic trajectory.

But it's probably too soon for them to edge a little more to the dovish camp. Perhaps if we get another month or two of good inflation data. So I don't expect a more dovish statement, BUT I see that as the possible surprise today.