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Futures Up Ahead of Fed Meeting

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  • Description

    FBN’s Diane Macedo breaks down the stories moving the markets ahead of the trading day.

  • Duration 4:55
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This is this Imus in the morning from.

On the -- Good morning everyone the Federal Reserve wraps up its two day policy meeting today and the Central Bank is expected to show.

It's ready to act to help boost the economy if needed but not actually launch any new measures just yet.

Economists say the Fed may extend its time frame for keeping interest rates low beyond late two point fourteen.

Investors also -- chairman Ben Bernanke announces another round of bond purchases known as quantitative easing to push down long term interest rates.

But the Fed is expected to hold off on either move until September to see -- job growth and consumer spending picks up.

We'll have full coverage of the Fed's decision and the market's reaction starting at 2 PM eastern right here on Fox Business.

That decision is due out at 215.

Meanwhile overseas the European Central Bank is set to meet tomorrow to discuss the region's ongoing debt crisis.

And markets are looking for some sort of action to come out of that meeting as well.

Fox business and that she Webster's outside the ECB headquarters in Frankfurt Germany with more -- good morning actually.

A good morning -- -- absolutely erratic ECB -- depression are about to take some sort of decisive aggressive financial policy to trying bring down the borrowing costs of both Spain and Italy.

-- expectations so maybe too high and too much.

Once we get the L word on Thursday afternoon here locally in Frankfurt as to exactly what they plan to do.

Already the Commerzbank chief -- of treatment has said -- the ECB should be aware of its independence.

And should not overstep.

Its mandate in other words it should not be buying the bonds of such countries such as Spain and Italy it is not supposed to prop up individual governments already.

There is a little bit of a standoff between the Bundesbank and the ECB we'll have to see how that resolves itself.

What we could see though on Thursday and the ECB is kind of touched on this a little bit.

In the the last couple -- weeks is to stop charging banks negative yield to park money with this Central Bank.

This would be an effort to get those European banks to actually stopped lending some of the cheap money that they've been enjoying.

Actually positive on to businesses and consumers already northern European banks have -- but -- lending to weaker southern European countries.

That has created a short fall of credit which just makes the situation in both Spain and Italy and Greece and Portugal that much harder.

What we will -- to our tomorrow afternoon -- may not be enough for the markets the expectations have been high ever since ECB president.

A Mario Draghi made that announcement that BS Central Bank would do what ever it takes he said.

To preserve the Euro.

So we'll have to wait and see -- -- already as I say this somewhat of a standoff with the German Bundesbank and that would hook ECB's credibility of the -- But -- bank says no you shouldn't be doing this by Ambac.

Do you that that she lets him live from Frankfurt Germany excess.

We're getting earnings -- now from MasterCard the credit and debit card providers reported an adjusted profit of five dollars 65 cents a share the estimate.

Was for five dollars 58 cents.

Revenue came in at one point eight billion dollars the estimate there was for one point 88 billion.

Looking at markets here in the US futures have been in in green across the board all morning Dow futures are now up by 43.

The S&P is up by four and the nasdaq's up by eleven taking a look at Europe the contraction in UK manufacturing deepened sharply in July.

Also eurozone PMI in July hit its lowest level since June of 2009.

You can see stocks -- -- are currently -- London is Ferris is up but Frankfurt on hand in hand.

Down by almost twelve points.

Treasury Secretary Timothy Geithner says problems in Europe and a divided congress are the primary obstacles holding back the US recovery.

Speaking yesterday in Los Angeles Geithner took aim at congress' inability to reach a compromise over future government spending and -- it can just continue the bush tax cuts for every one or two exclude the wealthy.

He also called on European leaders to do more to sell the region's debt crisis here's what he said.

-- recognize that this is completely within their financial movies the -- I think what they're finding of course and you saw us a space -- in no way no and I too is that the politics -- doing this are very hard.

Know what you're trying to do is to.

Make sure those economies become more competitive over time.

Tighter just returned from Germany where he met with the German finance minister and with the European Central Bank president Mario Draghi.

Draghi said last week that the Central Bank would do what ever it takes to preserve the bureau.

And as actually touched -- we may get a better idea of what that means when the ECB holds its policy meeting tomorrow.

Let's take a look at commodities now oil -- -- they'll both up -- up by about sixty cents -- around 88 dollars a barrel.

-- up by a little more than three dollars at 1617.

Announced.

Coming up this hour Imus -- guests of the Arizona Senator John McCain Imus in the morning continues right now on fox.

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