Fed's Talk of Growth, Balance Sheet Has Market Worried

The Federal Open Market Committee (FOMC) raised rates a quarter-point as expected, but the market wasn't too excited about the policy statement. While there were some optimistic comments about the economy and dismissal of some weak data, the Fed was not quite as positive about growth as it had been. To complicate matters, there was talk about taking steps to reduce the $4.3 trillion balance sheet that has been run up since riding to the rescue back in 2008-09.

Prices regained their footing in the final hour of action, which is pretty typical on Fed days, but will the market find some justification in this news for some selling? Seasonality is working for the bears now and that balance sheet reduction issue has caused some problems in the past, but the bulls continue to be quite sanguine about the potential for any negative....168 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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