2006-06-29 11:36:35 · 10 answers · asked by Yardbird 5 in Business & Finance ➔ Investing
The rise in rates was expected -- so had no effect at all on the stock market.
What did have an effect is the statement that the Fed made when they announced the rate increase. They said that in the future they would consider both the state of the economy and inflation when deciding where to set rates. They also indicated that their actions are curbing inflation and that the economy is improving.
This was considered good news.
2006-06-29 14:23:47 · answer #1 · answered by Ranto 7 · 2⤊ 1⤋
.25 is little and expected.
Now if the Fed rises interest rates .50 that would take the entire planet down.
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2006-06-30 03:45:52 · answer #2 · answered by Anonymous · 0⤊ 0⤋
It has me a bit confused too, but I think people are sensing that the end is near in terms of rate hikes.
So the move today, I would say, is psychological in nature.
2006-06-29 18:56:13 · answer #3 · answered by jonny r 2 · 0⤊ 0⤋
The rally caught me by surprise too, but it pushed me into positive territory for the year (finally!). I guess people were already expecting a quarter point increase, and the confirmation just removed some uncertainty.
2006-06-29 22:43:03 · answer #4 · answered by Michaelsgdec 5 · 0⤊ 0⤋
Did they? All I noticed was that the Feds raised the rate again. Hey, maybe it's something new!
2006-06-29 18:41:14 · answer #5 · answered by kathy059 6 · 0⤊ 0⤋
Because since this is the 17th time in a row that the Feds have raised it, investors are almost 99.9% sure that they won't raise them again when they meet in August. DUH!
How's your portfolio?
2006-06-29 19:12:22 · answer #6 · answered by Anonymous · 0⤊ 0⤋
there was a slight probability that the FRB was going to raise the fed funds target by 50 bps.
2006-06-29 18:41:40 · answer #7 · answered by Homer J. Simpson 6 · 0⤊ 0⤋
No one knows; no one ever will. Short-term movements in security prives are patently random.
2006-06-29 18:54:41 · answer #8 · answered by NC 7 · 0⤊ 0⤋
Don't know, but I'm not complaining, since my portfolio gained as well.
2006-06-29 20:59:59 · answer #9 · answered by warriorwoman 4 · 0⤊ 0⤋
Good ? but i don't have the answer
2006-06-29 18:38:48 · answer #10 · answered by lil_jelly2000 2 · 0⤊ 0⤋