U.S. stock futures were modestly higher Wednesday morning as investors waited to hear the Federal Reserve decision on monetary policy, and more its view on the economy when it releases a statement this afternoon. While no one really expects the Fed to raise rates, many are hoping the statement would give better indication about the state of the economy. There have been several signs pointing to a possible upcoming economic recovery, but other indications point to many dangers still. At 2:15 p.m. Eastern, the Fed will conclude its two-day policy meeting with a statement about policy and the and the nation's economic and financial conditions. Despite the growing signs the worst recession since World War II is ending, and that the economy has started to grow again -- or will soon -- it's likely the Fed policymakers will be more careful in their statement.
Meanwhile, a Bloomberg News survey of economists show that many now estimate the economy will expand 2 percent or more in four straight quarters through June. The recovery from the worst recession since the 1930s has begun as the fiscal stimulus takes effect, the economists indicated. Analysts lifted their estimate for the third quarter by 1.2 percentage points compared with July.
Overseas, Asian markets followed Wall Street's declines Tuesday and tumbled Wednesday on renewed jitters over the economic outlook. Chinese shares fell nearly 5 percent, although many call it a correction to previous overreaction. European markets, however, rose modestly Wednesday.
Other than the Fed statement later today, investors will also examine the June trade balance due out at 8:30 a.m., and oil traders especially will look forward to weekly inventory data to be released at 10:30 a.m. Oil traded below $70 a barrel.
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