FOMC Announcement on Wednesday

It looks like Wednesday is going to be a tough day in the stock market. There is a fear that the Fed is going to raise interest rates in order to attempt to curb inflation. In addition, fuel and food prices are getting higher, the fallout from the sub prime mortgage fiasco is not over, and unemployment is higher.

When this sort of announcement is known to be upcoming, an article like this one attempts to brace people for falling stock value.

Struggling Wall Street braces for new message from Fed

"All eyes will be on the FOMC which is slated to announce its latest policy decision on Wednesday," said Meny Grauman, economist at CIBC World Markets.

Credit problems are expected to deteriorate over the next 12 months, which should drive stock prices lower in the second half of 2008, in our opinion."

Bank stocks, he added "need to bottom out before the broader stock market can begin a meaningful sustainable rally."