Tax Reform in This Election Year: It's Not Likely
Which Credit Card Rewards Does the IRS Care About?
The stock market finished strongly today. Some of it was attributed to positive news about the municipal bond insurers. However, I believe much of it was due to the belief that the Fed will continue cutting rates as necessary to cushion the slowdown or a potential recession.
Prior to the recent FOMC statement and the inter-meeting rate cut, the Fed was sending out mixed signals regarding rate cuts. It tried to establish its credentials as an inflation hawk; however, it also left uncertainty about its ability to deal with a recession. This reduced the effectiveness of the initial rate cuts. Many believe that the Fed would be caught behind the curve in dealing with a potential recession.
The combined decrease in the Federal Funds Rate of 1.25% in the last two weeks along with the accompanying FOMC statement has established the Bernanke Fed's credentials for dealing with a potential recession. It has replaced the current market confusion with confidence in the Fed.
Goldman Earnings Sink After Buffett Dividend
Johnson & Johnson's Income Falls 23%
Burberry Shares Leap on Sales Update
