Markets are awaiting the conclusion of this week’s FOMC meeting

Markets are awaiting the conclusion of this week’s FOMC meeting which will culminate in a much anticipated announcement from the U.S. economic brain trust at 12:30 this afternoon. The fate of Operation Twist is the main topic of interest as the Fed’s swap of short-term bonds for longer-term bonds may turn into outright purchases of $45 billion worth of Treasuries, per month, starting in the new year. That’s because, unlike dollars, short-term bonds aren’t easily made out of thin air AND THE Fed is running out of them. These bond purchases would be on top of the billions in mortgage-backed securities the Fed is already buying on a monthly basis. On the fiscal cliff front, the end would most certainly justify the means but to what extent either side of the aisle is willing to alter their means continues to be a point of contention among lawmakers. There’s plenty of finger pointing to make finger-pointers happy but as we move ever closer to the end of 2012, the citizenry of this country will get ever more impatient. For now, there’s still time…however little it may be. The precious complex is in positive territory this morning but look for things to get a bit choppier ahead of the announcement. Chairman Bernanke will explain the events of the meeting at a 2:15 pm ET news conference. Have a great day!