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June 24th, 2009

Fed Meeting Ends Today

(Lee Siler) - 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.

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