FED Notes Released
All markets went sideways today. It looks like all markets needed to recover from their past moves, and reconsider where they’re going. Tomorrow should be more interesting.
In the news today…..
The FED released their minutes of the December meeting. They gave their rationale for lowering the Fed Funds rate to a range of zero to 0.25%. They believe that the US economy will be in very bad shape for a LONG time. They intend to keep interest rates low by purchasing Treasuries, thereby keeping longer term interest rates lower. The goal is to “force” investors to seek higher returns by purchasing “riskier” corporate bonds which are paying much higher premiums.
It’s interesting to note that longer term treasuries are currently INCREASING in interest rates – so where are the government buyers?
Here are Today’s numbers:
Dow Jones 30 Industrial – 9015 (up 62 points)
10 Year Treasury Bond – 2.51% (up 0.02%)
Euro – $1.3513
Gold – $866 (up $8)
Oil – $48.58 (down $0.23)
Gasoline – $1.19 (up $0.01)
