It looks that the fed is still possessed by the labor market losing jobs until now keeping its phrase of keeping the interest rate for an extended period of time warranted by low inflation pressure. The greenback came under pressure with no opposing voting but Hoening again who is still preferring taking a tightening action. The decision of keeping the interest rate unchanged between 0 to .25% was widely expected and it could keep the US stocks creeping up pace from falling. DOW could add another 43 points looking for January high at 10729. The investors' risk appetite has been supported by Fed's keeping this accommodative monetary stances further putting pressure on the greenback supporting the gold as a mirror of inflation in this time of suffering owes from the bonds markets amid credit downgrading which can give the gold another competitive feature versus the bonds which started to pay the cost of the governmental rescue plans and injecting liquidity in the recent 2 years into the nerves of the economy by increasing its stimulating spending, tax cuts and easing the monetary policies for spurring the investment and moving the economy out of the recession after the credit crisis.
- Published: 17 March 2010
- Written by Editor