The Dow will fall about 50 points on release of the FED statement...
Clearly the FED has to be more worried about the weak dollar. And the inflation that a weaker dollar might bring...
The Street is really not in need of a liquidity bailout at this point with all of the M&A activity recently... The huge rally in 2006 based on the elections and the FED stopping rate hikes has created on overbought situation...and the reversal of an overbought situation is NOT grounds for a rate reduction.
The house bubble is trouble that was caused by hyper-liquidity...and it will not be resolved by more liqudity...
The FED should keep it's powder dry for this summer when things might "heat up" in unforeseen ways....like say, $4 gas in California...! Or a hedge fund collapse caused by subprime risk taking...
