Wall Street down following Fed comments

From Reuters:

Wall Street dropped on Wednesday after the U.S. Federal Reserve frustrated investors hoping for a strong sign it might scale back future interest rate hikes because of recent financial and economic turmoil.

In a widely expected decision, the Fed kept interest rates unchanged and it said it was “closely monitoring” global economic and financial developments, but it maintained an otherwise upbeat view of the U.S. economy.

This morning Art Cashin predicted :

That, I think, will make them [the Fed] very reluctant to say anything that might look like a full mea culpa or a rethink. Therefore, I think the statement will say they remain flexible and data dependent and that they are aware of crosscurrents. Let’s see if that’s enough to boost the bulls.
Art was absolutely right about the Fed’s announcement but the market didn’t see it as a bullish sign.

 

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