Markets Prepare for Tomorrow’s FOMC Decision

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Dec. 17 (Bloomberg) -- Bloomberg's Scarlet Fu and Fred Ruffy, senior options strategist at, focus on the FOMC’s potential market impact in "On The Markets" on Bloomberg Television's "In The Loop."

What the statement could mean for treasury futures is the senior options strategist at what is

Before we begin with the technicalities of futures trading, give us your take of what you expect from the fed.

Good morning.

I expect the fed to sit down and iron out a new year's resolution to taper next year.

Probably something like, our balance sheet got bloated this year so maybe next year, we should do something about it erie it i do not expect them to taper at this meeting.

The next meeting is only in six weeks.

Or the end of january.

We have the holidays.

They historically do not taper in december.

So, we will probably see guidance for the future.

In the meantime, trading in treasury futures, looking kind of choppy right now.

Will this intensify tomorrow?

It is a two-day meeting.

Decision day is not until tomorrow.

That is what we typically set -- see.

Not much direction.

We are at 2.9%, which is a key area, not as important as three percent.

Three percent is something everyone is eyeing.

The difference has widening -- widened.

Right now, again, it is pretty much a wait and see.

I would not go too much into that right now.

We will see tomorrow what the reaction is to the news.

There are four later this afternoon.

What kind of them and is therefore taper?

The demand for the shorter- term taper is probably what we will be in line -- in line with expectations.

Do not expect major moves around that.

I also want to bring in what has been happening in washington.

Last week, paul ryan and patty murray came to some agreement on the budget deal.

The senate will be voting on its version of the deal.

Are you looking at that?

That is an important factor.

There is still the debt limit in february that will be a key issue.

Fiscal policy has been a drag on it.

Thank you so much.

Joining us from the cme this morning.

We are on the markets once again in 30 minutes.

"market makers" is up next.


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