The Fed is expected to come back into sharp focus as investors await news from their upcoming meeting. While most observers thing that the Fed will hold off on any new rounds of stimulus, they think it is becoming an eventuality.
While the data has been on a positive trajectory, the numbers under the numbers paint a less than rosy picture. The labor market is being bolstered by temp jobs. Is that sustainable in the long-term? Will it lead to a crimp in consumer spending. Will final demand be depressed due to rising fuel prices? All of these questions face the fed as they decide what to do to keep the economy in recovery mode.
Outside of the Fed statement, investors are looking forward to February retail sales numbers. Expected at 8:30am EST, they are expected to show a 1.1 percent gain. Most of that will be attributable to the jump in gasoline prices and auto sales. The rise in gas prices could also crimp fed action due to inflationary concerns. [Read more...]