Nov
4
Written by:
Steve Patterson
11/4/2009 4:14 PM
Federal Reserve Holds Rates as Expected
The Federal Reserve continue to hold the Fed Funds Rate at 0.25 %, historically low rates. The news created a mid-day rally in the stock market that faded into the close. The Fed believes economic activity has improved but is fearful about new job losses in the US and the possibility of tightening credit for consumers. There is no plan to increase the rate in the near term.
Service Industry
The Service Industry also added support early in the day with a decent report. The ISM reported service industry growth for the 2nd quarter in a row last month. The reading came in at 50.6 compared to a reading of 50.9 in September. Both readings signal growth. The Market was expecting 51.5 but rallied on the report non-the-less.
Economic Calendar
The remainder of the week remains busy with Initial Claims and Continuing Claims being released on Thursday. While Friday is a very active reporting day with Nonfarm Payrolls at 8:30 am, the Unemployment Rate at 8:30 am, and Wholesale Inventories at 10 am in addition to many other government economic reports.
The late sell-off in the markets would likely be related to the unemployment numbers coming later this week. Initial Claims is expected to come in lower than the last report at 522,000. Non-Farm Payrolls will also improve if in-line with estimates of –175,000. But the Unemployment Rate will still climb to a troubling rate of 10%. The markets will struggle to find buyers until all the reports are out this week.
© 2009 FastSwings.com
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13 comment(s) so far...
Re: Federal Reserve Holds Rates as Expected
The markets are having a hard time looking past the unemployment numbers. But the economy is recovering with the jobs lagging slightly.
By Reverse Cell Phones on
11/4/2009 4:16 PM
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Re: Federal Reserve Holds Rates as Expected
yeah now market is getting up.and recession is coming to end.peoples are getting new jobs.
By home values on
11/6/2009 8:00 AM
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Re: Federal Reserve Holds Rates as Expected
This recession was a bad thing, its not over yet but the wounds are healing slowly. Many people still have no job, nothing to do, its horrible. My prays belong to them.
By Coaching Kompetenz on
11/6/2009 10:07 AM
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Re: Federal Reserve Holds Rates as Expected
Unemployment is still the big problem here from what I can see.
By paretologic data recovery pro review on
11/6/2009 1:44 PM
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Re: Federal Reserve Holds Rates as Expected
Yeah, it seems that we are on the upswing, but I am worried about a second housing wave that would hit even harder.
By Blanket My Baby on
11/6/2009 2:06 PM
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Re: Federal Reserve Holds Rates as Expected
Too many peaple are loosing their jobs in which they are real specialists!
Hope that everything will change soon!=))
By Valencia guy on
11/6/2009 7:06 PM
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Re: Federal Reserve Holds Rates as Expected
Nice post. I'm wondering why the spike to almost 10% unemployment is still being overshadowed by health care? Come on, nobody's going to be able to afford ANYTHING if we don't have JOBS
By Fat Loss 4 Idiots Review on
11/10/2009 2:17 PM
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Re: Federal Reserve Holds Rates as Expected
@FatLoss, I agree that the Health Care issue is purely political and is not needed or helpful in the current situation the US finds itself.
By Steve on
11/11/2009 3:02 PM
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Re: Federal Reserve Holds Rates as Expected
It's a very obvious decision of Fed as the situation are still out of control because until the jobs availability does not return back to its normal track all the other sectors of the economy have to bear the pressures.
By Forex on
11/17/2009 12:44 AM
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Re: Federal Reserve Holds Rates as Expected
I completely agree with your opinion
By Viki on
11/17/2009 7:50 AM
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Re: Federal Reserve Holds Rates as Expected
The fed cannot afford to lower rates again, it would put too much pressure on an already weakening dollar. This in turn causes the price of oil to rise since sellers are going to compensate for cheaper dollars. The affect on our economy is inflationary and the fed will not stand for that at this stage.
By debit card payment on
11/18/2009 10:44 AM
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Re: Federal Reserve Holds Rates as Expected
Great Post, I’ll be definitely coming back to your site. Keep the nice work up.
By dissertation writing help on
12/22/2009 10:49 AM
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Re: Federal Reserve Holds Rates as Expected
Fed Reserve decision has great priority because it affects the traders' position making decision and also has the ability to shook the forex market as the interest rates influence the market .
This post is of great help and I always like reading your posts.
By Forex on
2/5/2010 11:26 PM
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