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Income Issues Rally as We Await the FOMC Announcement

Just 30 minutes to the highlight of the day – certainly the talking heads can hardly wait – I am sure CNBC has a panel all queued up so they can give their opinions and they can yak about it for at least an hour–maybe more. I will actually turn on CNBC for a couple minutes for the announcement–then mute it until Powell speaks–a person can only take so much balony.

The Q & A after the announcement is all that matters – Powell will say ‘we are on hold this time, but we will continue to monitor data and if warranted we will increase rates as inflation remains above the 2% target’. He is likely to say that interest rates are doing the job for the Fed potentially reducing the need for immediate action from them.

In spite of any surprise from the Fed the algo’s will toss the S&P500 around – just hopefully not too violently–it is just not necessary–don’t need to ruin our nice rally in preferreds and bonds today.

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