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Home > News and Opinion > Fed Meeting Ends Today

Fed Meeting Ends Today

Lee Siler | Wednesday, June 24th, 2009

Stocks traded flat with a downward bias, while the Fed concludes its 2-day meeting today. Wall Street will be looking for any signal from the Fed with regards to the fate of interest rates. Obviously, rates are at historic lows, but as the economy tries to bottom there will be a need to tighten monetary policy. However, the question is when?  Many economists think the Fed will have to start raising rates towards the end of the year to try and head off inflation.  Keep in mind that the Fed Funds target rate is 0.00%-0.25%.  That leaves a lot of room to ratchet up rates over the next several months.

The market is indicating a higher opening, but again this could be a short-lived rally.  However, I still like the healthcare group.  Abbott Labs (ABT) is my favorite big-cap drug stock.  But, I really don’t think you can go wrong owning any one of them.  Although, ABT doesn’t have the dividend of a Bristol Myers Squibb or Merck, I think the upside is greater based on their pipeline of new products.

Let’s see how things play out over the next few days before we start aggressively buying.  If you played it right, you should have some cash ready to go.

Until tomorrow, I wish you a great day…

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