Fed Holds Rates

It was no surprise that the Fed Chair,Ben Bernanke, kept the fed funds rate at 5.25this is the third straight time they have not touch the rate. This news was welcomed on Wall Street as the stock market was up again. The Dow Jones has hit record highs and all the major stock market indices have done very well the past few months during the rate stabilization. Unexpected was the non-story. Many predicted the Fed was emphasize their concerns about inflation, but they stated the economy is going at an acceptable rate. This is another positive indication that investors on Wall Street look for when they want good news. This news will probably help the U.S. equity market in the short run.

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