It's not a sign of a robust recovery when markets drop at the merest hint the Fed may reduce its stimulus and ZIRp interest rate policy.
The Detroit Free Press: Susan Tompor: Markets having worst day of year
Today investors saw a flashback to the down days of cheese and crackers. After 3 p.m., the Dow was down about 313 points or 2.13% and trading at 14,798.25 points. It looks like the worst day for 2013 so far.This week, the Federal Reserve’s open market committee made no changes to interest rates or monetary policy. But the Fed gave a hint that the economy is looking stronger.
One key phrase in the Fed’s statement: “Labor market conditions have shown further improvement in recent months.”
Another key Fed phrase: “The downside risks to the outlook for the economy and the labor market have diminished since the fall.”
Yes, better days. But some say that Wall Street is now worried about the Fed engaging in a quick, more restrictive monetary policy ahead.
Something tells me we're in for one helluva ride, and this is even before the full effects of Obamacare roil and roll the economy and markets even more.
3 comments:
...and a country boy can survive...
Dann in Ohio
Dann:
Yep, you got it.
Yeah...I think it's time to swap my FERS account allotments around. The bubble is held by the pumping, so the ride may be ending.
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