Your Economy (No Politics)

[Bullwinkle]

Market looks ahead to Fed's next wording

While the Fed isn't expected to change interest rates, it could alter its "considerable period" language pertaining to keeping interest rates at their historically low levels for a long time.

Economists at Goldman Sachs said in a note to clients that even if the phrase is updated, the central bank wants rates to stay low.

"If the 'considerable period' language was removed, then the Fed would presumably substitute some other language to underscore this sentiment," Goldman Sachs economists said.

Results of the Fed meeting will surface on Tuesday at 2:15 p.m. Also on Tuesday, wholesale inventories and the Richmond Fed survey are due.

On Thursday, November retail sales are expected to show a gain of 0.7 percent excluding automobiles, and October business inventories are expected to rise 0.2 percent.

The producer price index will surface on Friday, with economists forecasting growth of 0.1 percent. Also on Friday, the U.S. trade deficit is expected to weigh in at $41.5 billion for October.

http://biz.yahoo.com/cbsm-top/031206/b88f18bf0c4fa2bc9b7c6a47868898a3_1.html