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Did Fed Give Investors Good News, Or Bad?

Tuesday, 21 Sep 2010 | 6:33 PM ET

What must you know about the latest Fed statement before you place your next bet?

Wall Street breathed a collective sign of relief after the Fed said it would use all policy tools if needed to bolster a sluggish economic recovery at the conclusion of its one day policy meeting.

Also noteworthy for investors, the Fed underscored its concerns over slowing inflation in its statement on Tuesday, saying the underlying rate of inflation was below levels consistent with its mandate for price stability and full employment.

"This sets the table for QE (quantitative easing) in November or December should it be necessary. They are now outlining the key rationale for that -- low inflation, high unemployment," speculates Eric Green of TD Securities in a Reuters interview.

What should you make of it?

Analyze This: Fed's Move
Today's FOMC statement opens the door to future accommodation, says Marc Chandler, Brown Brothers Harriman.

Instant Insights with the Fast Money traders

I’m concerned by the action I saw in the Treasurys post Fed statement, says Joe Terranova. They caught a bid and that may be a negative sign for equities. Essentially the Fed told us the economic outlook is in question. That makes me wonder about the next batch of corporate earnings.

The fact that they don’t feel they need to worry about inflation suggests to me they can throw everything at this problem should they need to, muses Tim Seymour.

In the near term the Fed makes me dollar negative, explains Marc Chandler of Brown Brothers. Find out why. Watch the video now.




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Trader disclosure: On September 21st, 2010, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Seymour owns (AAPL); Adami owns (AGU), (BTU), (NUE), (GS), (C), (INTC), (MSFT); Adami’s wife works at Merck; Terranova Owns (APA), (AAPL), (ARUN), (BMO), (C), (DO), (EOG), (FCX), (FTO), (XBI), (GS), (HES), (IBM), (JOYG), (MA), (NBR), (NOV), (OXY), (ORCL), (PEP), (POT), (RSH), (GLD), (SLB), (SU), (SPLS), (RIG), (UPL), (VRTS)

For Patty Edwards
Edwards owns (AAPL) for clients
Edwards owns (AMZN) for clients
Edwards owns (CSCO) for clients
Edwards owns (EMC) for clients
Edwards owns (FCX) for clients
Edwards owns (GOOG) for clients
Edwards owns (HPQ) for clients
Edwards owns (IBM) for clients
Edwards owns (JPM) for clients
Edwards owns (MS) for clients
Edwards owns (NRG) for clients
Edwards owns (ORCL) for clients
Edwards owns (SYT) for clients
Edwards owns (WFMI) for clients


For Joe Terranova
Terranova is chief market strategist of Virtus Investment Partners, LTD.
Virtus Investment Partners own more than 1% of (ABAX)
Virtus Investment Partners own more than 1% of (ALK)
Virtus Investment Partners own more than 1% of (AMKR)
Virtus Investment Partners own more than 1% of (CASS)
Virtus Investment Partners own more than 1% of (CSVI)
Virtus Investment Partners own more than 1% of (IGE)
Virtus Investment Partners own more than 1% of (LDR)
Virtus Investment Partners own more than 1% of (LPHI)
Virtus Investment Partners own more than 1% of (MGRC)
Virtus Investment Partners own more than 1% of (NRCI)
Virtus Investment Partners own more than 1% of (DBV)
Virtus Investment Partners own more than 1% of (XLB)
Virtus Investment Partners own more than 1% of (XLP)
Virtus Investment Partners own more than 1% of (XLY)
Virtus Investment Partners own more than 1% of (XLF)
Virtus Investment Partners own more than 1% of (XLI)
Virtus Investment Partners own more than 1% of (XLU)
Virtus Investment Partners own more than 1% of (SUBK)
Virtus Investment Partners own more than 1% of (WDFC)
Virtus Investment Partners own more than 1% of (YDNT)
Virtus Investment Partners own more than 1% of (DLUEY)
Virtus Investment Partners own more than 1% of (DRYS)

For Brian Kelly
Accounts managed by Kanundrum Capital own (GLD)
Accounts managed by Kanundrum Capital own (GDXJ)
Accounts managed by Kanundrum Capital own (SLV)
Accounts managed by Kanundrum Capital own (ORI)
Accounts managed by Kanundrum Capital own (RGR)
Accounts managed by Kanundrum Capital own U.S. Dollars
Accounts managed by Kanundrum Capital own (TLT)
Accounts managed by Kanundrum Capital own (TIP)
Accounts managed by Kanundrum Capital own (POT) calls
Accounts managed by Kanundrum Capital own Swiss Francs
Accounts managed by Kanundrum Capital are short Euros
Accounts managed by Kanundrum Capital are short (BCS)
Accounts managed by Kanundrum Capital are short (IAI)
Accounts managed by Kanundrum Capital are short (XLF)
Accounts managed by Kanundrum Capital are short (OIH)
Accounts managed by Kanundrum Capital are short (BA)
Accounts managed by Kanundrum Capital are short Mexican Peso
Accounts managed by Kanundrum Capital are short U.K. Pound

For Mark Mahaney
Citigroup Global Markets Inc. or an affiliate received compensation for products and services other than investment banking services from Amazon.com Inc in the past 12 Months.
Citigroup Global Markets Inc. currently has, or had within the past 12 months, the following as clients, and the services provided were non-investment-banking, securities related: Amazon.com Inc.
Citigroup Global Markets Inc. currently has, or had within the past 12 months, the following as clients, and the services provided were non-investment-banking, nonsecurities- related: Amazon.com Inc.
Citigroup is a market maker in the publicly traded equity securities of Amazon.com
Citigroup is a market maker in the publicly traded equity securities of Priceline.com

For Michael Binetti
Binetti’s team owns (NKE)

For Marc Chandler
***No Disclosures***

For David Riedel
***No Disclosures***

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