Upbeat Fed Statement, Obama Speech Fuels Demand for Higher Risk
Long-end of Treasury Complex Reacts Negatively to Fed Statement
Stock indices managed to eke out a small gain after the Fed left interest rates alone but offered more details as to how it plans to exit its stimulus programs. Although the Fed said the employment situation was improving equity traders failed to take notice and instead focused on the thought of higher interest rates.
Stock Index Futures Sell Off Ahead of Fed Statement
Fed Statement Does Nothing to Stop Demand for Higher Risk Assets
The Fed FOMC committee decided to leave interest rates at historically low levels and issued a statement that said nothing to deter demand for higher risk assets. It is now up to aggressive traders to take advantage of the thirty day free pass issued to them by the Fed’s inaction. At this time the Fed is no closer to raising interest rates than it was last month.