Posted on 01/28/2015 2:30:16 PM PST by John W
NEW YORK (TheStreet) -- Stock markets didn't react well to a tight-lipped statement from the Federal Reserve that gave no clear signal as to when it would begin to hike interest rates. January's meeting announcement came with no accompanying press conference, leaving investors to comb the wording for clues as to when a rate hike could occur.
"From the equity market perspective, this might be the least helpful the Fed has been," said Brean Capital's Peter Tchir. "They didn't even find a way to work 'considerable' language into this."
The S&P 500 closed 1.2% lower, and the Nasdaq dropped 0.73%. The Dow Jones Industrial Average was down 1.1%, or 193 points.
(Excerpt) Read more at thestreet.com ...
We’re at the “Emperor’s New Clothes” stage of the business cycle...
yup
The fact that the market is controlled/spooked by the Fed shows just how off course we are from a capitalist system.
This is exactly what is keeping the fed from raising interests rate. The second there is even a hint of that, stocks will crash as people start moving money back into interest friendly investments.
Fed is dreaming if they think they can raise rates!
We have been waging a financial world war of debasing currencies. US did QE, then Japan, now EU.
Next up is US again. If we don;t do more QE then many big US companies that sell to EU and Japan will have some very bad quarters as US products are now more expensive in terms of yen and euros.
O’Shiitecare is the problem. Neither party is interested in dumping it.
You didn't say what it is that is keeping them from raising interest rates. It is the fact that if they do, it will crash the stock market?
There’s that little “interest on the federal debt” item in the budget...
The Fed doesn’t even have to raise interest rates to crash the market. All the Fed has to do is say they are going to raise interest rates and that will crash the market.
It’s mostly speculation/betting, not investing.
If the feds raise interest rates, it will add billions to to the national debt. Not sure about crashing the markets. The minute the feds announce further QE, the markets will again take off. Stock market heroin.
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