Posted 9:30 AM ET – Today the Fomc is likely to announce the reduction in US Treasury purchases. Tapering is the first step towards tightening and traders will be looking for hints on how worried the Fed is about Inflation. Central banks around the world are playing “chicken” with inflation. None of them want to tighten, but most of them are considering it as yields rise. The spike in prices (wages, oil, ore and food) is pushing real yields (interest rates minus the inflation rate) further into negative territory and that makes stocks attractive on a relative basis. I suspect that …