The Wall Street journal reports,"After two days of gains and a remarkably laid-back response to Russia’s announcement that it would annex Crimea, stock markets are now slotted into a familiar holding pattern ahead of the Federal Open Market Committee’s policy announcement at 2 pm. EDT.
It’s a mark of how the Fed has achieved policy predictability with its informal signaling channels – including via some recent Congressional hearings by new Chairwoman Janet Yellen – that markets are so comfortably prepared for this meeting. A $10 billion cut in monthly bond-buying is widely expected, as are FOMC’s members’ preferences for holding rates near zero even if the unemployment rate gets below 6.5%. There’s no great mystery here, so once this is out of the way, many believe a market that “wants to go higher” will easily continue doing so. Whether that makes sense is another matter. (MC)
UKRAINE: After Russian President Vladimir Putin signed treaties to annex Crimea Tuesday, markets seem mostly unfazed by it.
Investors seem to have largely decided that Russia’s annexation of Crimea and continuing turbulence in Ukraine is a regional issue. Yes, it gives western politicians a chance to grandstand. But given Europe’s dependence on Russian gas and oil, there’s very little will to push back at Mr Putin. So a few cosmetic economic measures are being imposed amid the wider expectation that the whole situation will fade into the backdrop sooner rather than later".
