The Fed rocks!

The fed can rock the markets. They know this and act accordingly. Which includes rocking them when needed. They rarely act between meetings and without notice but when they want the markets to get the message, the move in-between meetings. They did this when the markets were dropping after the dot com bubble. They wanted the markets to recognize that they were lowering interest rates and were not unaware of the situation so they cut between meetings and the market jumped but only short term. It still continued to descend over the next months but slower and much more controlled.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s