Wednesday, November 3, 2010

Wall Street vs. Fed policy decision

Apparently Wall Street will know how much the Fed would like to use to stimulate the economy. The Fed will announce their decision on Wednesday. There was a lot of debate on the size and lengths of programs that they were planing on creating. Treasury prices rose which caused interest rates to go down a little bit. Private employers created 43,000 jobs last month after cutting jobs in September.


This doesn't sound good cause we might end up with inflation... or that's how I'm interpreting it. Since interest rates went down, that's good. Now people wont be in as much debt as they would've and that would probably stimulate the economy cause this will probably give people a little bit more confidence to buy on credit. And unemployment rates will go lower and that will bring us a step closer to becoming a super strong market economy again! YAY!

Source:
http://www.msnbc.msn.com/id/39984746/ns/business-stocks_and_economy/

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