This week should promise to be full of excitement as the FOMC meets Tuesday and Wednesday to decide the fate of the U.S. economy.  Well perhaps not the fate, but they will decide on new interest rate policy.  At this point, any further rate cuts will probably signal financial suicide, so expect the FOMC not to cut rates.  However, some analysts in the financial world are figuring a rate increase from the Fed this week in order to battle inflation and to make an attempt in strengthening the dollar against the rest of the world.  Futures this week are showing rates will remain stable at 2.00%.  A rate increase at this point would be more symbolic than helpful as it would signal that the inflationary pressures the U.S. has been experiencing are indeed real and a priority.  As most of you know, it’s gotten a bit expensive to eat and drive into work.  Expect a stronger inflationary statement from the FOMC this week.

On Tuesday, we have consumer confidence at 10:00 am EST.  Wednesday brings Durable Goods (8:30 EST), New Home Sales (10:00 EST), and the FOMC announcement (02:15 EST).  Thursday’s a fairly important economic day with last quarter’s GDP and Jobless Claims (08:30 am EST), as well as Existing Home Sales (10:00 am EST).  And rounding out the week on Friday is Consumer Sentiment at 10:00 am EST. Details can be found here.

Futures were up over 50 points last night but are currently up about 10 points.  I’m looking for some sort of a dead cat bounce, but at this rate, I don’t know if it’ll happen.  We’ll see!