Wall Street spins on Fed statement

[The Straight Story]

Wall Street spins on Fed statement


Update 2:30 p.m. ET: Reuters says it's "unclear whether the (Fed) decision, which involved no new committment of funds for bond purchases, would be enough to put a floor on a U.S. stock market that has fallen more than 15 percent in the last two weeks."

That uncertainty appeared to be reflected on Wall Street, where the Dow swung sharply back and forth as investors digested the news.


The Fed said economic growth was weaker than expected and that inflation was likely to "remain contained."
"The committee currently anticipates that economic conditions — including low rates of resource utilization and a subdued outlook for inflation over the medium run — are likely to warrant exceptionally low levels for the federal funds rate at least through mid-2013," it said.

http://fieldnotes.msnbc.msn.com/_news/2011/08/09/7318840-wall-street-spins-on-fed-statement