Market commentary

U.S. stocks and bonds are trading flat this morning as all await the results of the FOMC meeting at 2:15 p.m. ET. It does not appear that Chairman Bernanke will have a post-meeting press conference as had been originally expected. Some analysts have speculated that the Fed will announce $50 to $60 billion in monthly Treasury swaps (selling 1-to 5-year notes and buying 5- to 10-year notes) for a six-month period in what has been referred to as “operation twist.” This is generally what the market is now expecting, so anything smaller, larger or different could get a response from the markets. Stay tuned!