Market Insider

Markets listen for cooing of dovish Fed

Eye on the Fed

Markets are primed for a dovish statement from the Federal Reserve on Wednesday that should keep a lift in stocks.

The Dow and rallied to record highs Wednesday morning after closing at new highs Tuesday, as traders bet on an uneventful outcome when the Fed ends its two-day meeting Wednesday afternoon.

"They (traders) put the possibility of a surprise tapering at zero," said Art Cashin, director of floor operations at UBS. He said there was some short-covering Tuesday as traders assumed the Fed would not announce any reduction in its $85 billion monthly bond-buying program.