Tomorrow is the Superbowl of Fed events, with Federal Reserve Chairman Ben Bernanke stepping forward and giving his first press conference.
Expectations are for something like the show Jean-Claude Trichet, President of the ECB, puts on in Europe after every board meeting.
This is how it should play out, according to Wall Street Journal Fed watcher Jon Hilsenrath:
- Things will kick off at 2:15 PM, expect a short statement from Bernanke
- It should last around 45 minutes, and attempt to focus solely on what the FOMC has said
- Questions will be taken from the crowd, raised hand style
And here’s what Goldman Sachs thinks we’re going to get out of the session (via Zero Hedge):
Wednesday’s events are of importance to market participants for at least three reasons, in our view: 1) the information they will provide about the FOMC’s economic outlook, 2) communication of decisions regarding the asset purchase program (“QE2”), and 3) the novelty of the press conference format itself, which should provide at least some insight into the Fed Chairman’s thinking (although he will undoubtedly emphasise the views of the committee rather than his own).