Here are the four key ideas.
- There will be no rate hikes until mid-2013.
- The Fed says downside risks to the economy have grown.
- The Fed is prepared to use additional tools if warranted.
- Three Fed members -- Kocherklakota, Fisher, and Plosser -- have dissented from the FOMC decision.
What additional tools? QE3? This statement may explain the market's reaction today. The market is totally addicted to the easy money. Now that Obama has his money, and Bernanke has stated that he'll drop more money from his helicopter, if needed, the market rushes to buy more stock. It makes sense to me! /sarc
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