Posted on 09/18/2015 2:43:52 PM PDT by John W
U.S. stocks sank Friday, with the S&P 500 and the Dow Jones Industrial Average closing down for the week, as Federal Reserve’s decision to leave interest rates unchanged fueled fears about global economic growth.
The central bank cited concerns about the global economy and a lack of inflation growth in its Thursday decision to leave interest rates unchanged.
“Many are confused by the outcome of the recent Fed meeting,” said Kent Engelke, chief economic strategist at Capitol Securities Management. “Markets hate confusion and lack of clarity.”
The S&P 500 skidded 32.16 points, or 1.6%, to close at 1,958.08 for a weekly loss of 0.2%. All S&P 500 sectors finished lower, led by energy shares.
The Dow Jones Industrial Average dropped 289.95 points, or 1.7%, to close at 16,384.79 with all 30 components in the red. The blue-chip index edged down 0.3% for the week.
The Nasdaq Composite shed 66.72 points, or 1.4% to 4,827.23. The tech-heavy index is the only one of the three major stock barometers to finish out the week higher with gains of 0.1%.
(Excerpt) Read more at marketwatch.com ...
Who writes these headlines
And who are the Fed sows they speak of?
The Fed did exactly what it’s been doing for 9 years.
Nothing.
The Fed is unfortunately between Iraq & a hard place. They need to raise rates because the free money is distorting values and creating bubbles. But the strong dollar and the dismal state of most of the worlds other economies argues against raising rates. Plus, there is no inflation (except in eggs and food) as measured by what inflation is measured by. And don’t give me the supermarket example.
She should have raised 1/8%, a fairly meaningless move, but one that would have signalled a small bit of awareness as to the hazards of continued synthetic monetary policy. I knew that leaving rates alone would be seen as an admission that the current memes are generally lies.
Sonya Sotomayor, Ruth Buzzie Ginsburg, Elena Kagen, Dianne Fineswine, Babs Boxer, Suzie, Mikulski, Fauxcahontis, Claire McHighschool, Jeane Shaheen, Hitlary and of course an entire small country of nasty national socialist females, deeply embedded in the power structure of the executive-branch bureaucracy.
I’d like to hear what Alan Greenspan has to say.
He was expert at stirring the pot.
/just kidding
We have been in an economic depression since 2007, with an economy propped up by government printing of money and artificial interest rates. At some point the sheeple have to realize it is all a house of cards.
[She should have raised 1/8%
Shoulda, coulda, woulda. While I agree that a token interest rate hike might have been appropriate, it also might have triggered fears that further rate hikes were to come. Either way we’re approaching the end game. Once interest rates begin to climb it will trigger the next global meltdown and make our outstanding debt crash the US.
they never raise or lower less than .25%. If they raised .50 the market would really have tanked. As I have said before the Fed is like a hamster on a wheel. They cannot get off.
The backstops are depleted, gone, kaput.
The massive hole the Feds have dug is in loose sand and keeps sliding back in.
There is no way to climb out.
They have spent the wealth of a great Nation that was built on the back of the middle class family and given to the lowest scum in the nation.
And now the _resident imports more of his brothers for the death blow.
Manufacturing on U.S. soil, by the way—not American-”based” manufacturing that is done on foreign soil.
“they never raise or lower less than .25%.”
But this is not a rule; it is or may be a “practice”. And it would not matter if it was a rule or not, there is no governing authority over the Fed. A token raise would have shown Fed recognition that the need to normalize exists, while also understanding that from zero to *any* percentage is an enormous change.
The Fed did not raise even with unemployment better than their previously-established “line in the sand” and thus they have sacrificed some of their cred in the name of “responsiveness.” This was another move in that direction. They are, by their inaction, showing they really do not the power to supplant their fictions with real world acts.
I do not believe there is a fear of rapidly rising interest rates in any respect. Every economy on earth is reaching, reaching to see if there is some inflation, anywhere, and they can find none. The financial system would detonate with short rates even in the 3.5% range. I don’t think we’ll see those kinds of numbers for at least 5 years and possibly ten.
Well its not a rule but it might as well be as its the norm for years now. If they don’t want to raise a measly .25% then they need to just stick tight which is what Yellen is doing. She will not raise rates unless forced to.
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