Thursday, March 22, 2007

Big Ben Holds Rates, Market Throws Party

The FOMC did almost exactly what we expected, it held rates at 5-1/4 percent. The market however did something that I did not expect, it decided to celebrate. Check out the chart to the right see what I mean. Most major market indices were up over 1.5% on the day yesterday, so the rally left few behind. You can read the statement in its entirety here. I could break the press release down myself, or I could just point you towards the Wall Street Journal Online's analysis which I feel is very much on point. Please note how important each word is in the FRR. A slight modification of wording can actually move the markets. Read on below:


























Source: The Wall Street Journal Online
http://online.wsj.com/public/resources/documents/info-fedparse0703.html

Posted by The La Jolla Guy at 11:31 AM

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