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Fed Jolts Economy, Stocks Reverse Effect

Circular Motion

And now we're back where we started.

Things were looking pretty good for the economy when the Fed decided to keep up its stimulus earlier this week. But then stocks fell, and we ended up right back where we started. How did it happen? The Fed's decision caused stock and bond prices to rise, but the excitement faded quickly, reversing the effect and pointing to continuing slow economic growth—and that's not to mention fears relating to the upcoming budget debate, which promises to be unpleasant. Friday was also a "quadruple witching," meaning that both index and individual options and futures all expired on the same day.

Read it at Wall Street Journal