That has some on Wall Street, such as
Citigroup economists, warning about the risk that the Fed will disappoint. Stocks may face pressure if Fed officials hold off on buying more long-term Treasury bonds, the group of economists wrote in a recent note.
“A still-very-accommodative Fed may disappoint some market participants who expect ever-easier policy,” they said. The economists noted there is a 25% chance that the Fed extends the average maturity of its Treasury purchases at its meeting this week.
Others agree. Marc Pfeffer, chief investment officer at CLS Investments, is concerned about the possibility that the Fed will disappoint. “Given where the market is, there’s more risk skewed toward having a negative [market] reaction than a positive reaction,” Pfeffer told