You had to figure that the Fed would throw Wall Street a bone to chew on. However, this was quite unexpected in how they did it. They did emphasize a concern for growth going forward in their FOMC Statement, however it seemed like a bit of reverse-psychology was at work here. Perhaps they knew that perception was more important than reality, and by not cutting rates, they basically showed confidence in the long-term ability of the markets to work itself out of this mess.
But let’s be frank, I honestly doubt that we are totally out of the woods. Further uncertainty in the financials will likely lead us to another series of sell-offs, and who here doubts that over the course of the next few weeks, that we won’t see further problems rear its ugly face?
Here’s the Nasdaq and S&P charts…
