The Week Ahead: An Interesting Few Days in Store

It's hard to imagine after the drop in the stock market last Friday, but for all of last week the major stock market indices all closed higher, marking their third consecutive week of gains. The week started off with worry over what degree the Fed would taper its stimulative efforts -- and then the market rocketed higher after we learned the Fed did not taper at all. Then the indices fell on Friday as concerns over why the Fed didn't tighten, and the looming debt-ceiling fight, came to the forefront of the conversation.

As Fed chief Ben Bernanke laid out in his prepared remarks this past Wednesday, the central bank will continue its highly accommodative policies at least until the U.S. economy hits a 6.5% unemployment rate. Specifically, Bernanke said (PDF) Federal Open Market Committee participants, in the aggregate, see "the projected unemployment rate for the fourth quarter of next year encompasses 6.5%, 12 of the 17 participants expect the first rate increase to take place in 2015 and two expect it to occur in 2016."  ...692 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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