Trader Talk
- Wall Street Fears Dodd Bill
- Have Loan Losses Peaked for European Banks?
- Dow Industrials at New Highs—But Other Indices Lag
- Risk Trade Is Back On
- HMOs Up Despite Looming House Vote
- What The Street Thinks of The Jobless Report
- Friday It's All About Jobs, Jobs, Jobs
- October Retail Sales—The Good, Bad and Ugly?
- When Good News = Good News
- Retail And Jobs Lift Mood
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Reporter
The Fed was slightly more positive on the economy, noting that "conditions in financial markets have generally improved in recent months" and that "the pace of economic contraction is slowing."
A slight change in the inflation statement. They removed concerns about deflation, but did address those who are worried inflation will get out of control in the next months. They said "substantial resource slack is likely to dampen cost pressures"
Rates: to remain low "for an extended period".
So why are stocks lower in the first half hour after the statement? First, traders pointed to the fact that there was no increase in the purchases of Treasuries or mortgage backed securities. This has led to a rally in the dollar, and because U.S. stocks have been very dollar sensitive recently (particularly commodity stocks) the market has declined.
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Questions? Comments?
- Wall Street Fears Dodd Bill
- Have Loan Losses Peaked for European Banks?
- Dow Industrials at New Highs—But Other Indices Lag
- Risk Trade Is Back On
- HMOs Up Despite Looming House Vote
- What The Street Thinks of The Jobless Report
- Friday It's All About Jobs, Jobs, Jobs
- October Retail Sales—The Good, Bad and Ugly?
- When Good News = Good News
- Retail And Jobs Lift Mood
Data is a real-time snapshot *Data is delayed at least 15 minutes