Today's big event is that Fed keep the key rate at 2 % and prime rate 5% steady. The Market's reaction on this decision is Dow is up 1.3% to 11059.02, Nasdaq is up 1.28% to 2207.9 and S&P is up 1.75 to 1213.6. The leading sectors are Finacial which gains 3 percent and Basic materials which gain 2.3%.
The Fed's view on economy is that the economy is more dour than last assessment in early August. The economic growth appears slowing as consumer hunker down and export growth cools off bit. The strains in Financial market have increased signaficantly.
The first thing Fed need to do is to stablelize the Finical market.
Second thing Fed need to do is to increase the USA internal requirement by reducing the inflation, since the international market is weak also.
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