Wall Street waits for Fed’s Rate Decision
RateEmpire.com
Since the last two weeks the stock scenario seems quite flexible, this is mainly because the investors were more or less relaxed about the housing and the financial sectors. This week, all eyes are set on the Federal Reserve, which is expected to cut the rates further. However, this will be the third rate cut of the year. Earlier, the Fed had dropped rates twice due to the surging mortgage defaults.
The stock market’s reaction to the rate cut expectation seems pretty positive, since the recent report shows good gains. Infact, the estimated credit loss in some banks has also been milder than what was feared. The Dow Jones Industrial Average also rose by a good extent.
However, investors are relieved now by the fact that the rate cut will smoothen the credit and the housing market, which is the main reason behind the slow rate of economic growth. But the only worry as of now is the Labor Department’s producer price index and the consumer price index about to be released soon.
Original Article
Copyright 2007 RateEmpire.com
|
