New York, New York (PressExposure) December 22, 2009 -- "Mann International"; The Federal Open Market Committee will more than likely issue a downbeat statement at the end of its two-day meeting this week in an effort to dampen mounting speculation that it will begin tightening monetary policy prematurely.
Conjecture has been rife following the release of figures from the US Department of Labor which showed that private firms shed only 11,000 jobs in November and better than expected retail spending numbers in the US.
"Mann International" reportedly believes that a hawkish statement would prompt a sell off in equities and a strengthening in the dollar that could have a harmful impact upon the mild recovery in the nations export sector.
Chairman of the Federal Reserve, Ben Bernanke, is a student of the Great Depression which blighted America and the rest of the world in the 1930s and will be mindful of tightening policy too soon when the nascent recovery is so fragile.
"Mann International" analysts believe that the Fed will almost certainly leave its Fed Funds rate at near zero but point out that considerable pressure is building in the bond markets following two government bond issues last week which saw buyers demanding noticeably higher yields.
They believe that, given time, the bond market could force a rate increase on the Fed and cited higher than expected PPI (Producer Prices Index) numbers showing that inflation is beginning to pick up.
Once again, "Mann International" sources advised its clients to remain vigilant and to acquire precious metals on price dips.