After a strong week last week, with no economic reports due out today stocks took a siesta and the Dow coasted to a 19 point loss. After Fed Chief Ben Benanke's interview on 60 Minutes last night, traders seemed to be digesting the impact of the new QE2 program. Big Ben declared 100% confidence that he posessed the ability to stem the inflationary side effect of the new program by raising rates at any time. He even opened the door for purchases in excess of the planned $600 billion. He was also clear that he is not printing money. These funds are coming directly from the Fed's massive reserves.
This entry hasn't been re-blogged:
- Topic: ActiveRain Community