Warren Buffett’s Burlington Northern (BNI) buy, calling it an “all-in wager on the economic future of the United States,” sets up an interesting dynamic ahead of tomorrow’s FOMC statement.
Along with last week’s 3.5% 3Q GDP reading, Buffett’s rhetoric fuels the perception that the recovery is building steam, and the Fed doesn’t want to be left at the station clinging to its extremely accommodative policy when the economic growth train pulls away.
Growth is ultimately good for stocks, but a more hawkish Fed will help the US dollar, and stronger dollar has crushed stocks lately. Should be an interesting meeting today and tomorrow in Washington.
S&P futures well off earlier weakness, now down 4.20; DJ futures down 42.