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Federal Reserve System

Stock Market Today

DJIA Today Rises on Greece Bailout Plan, Yellen Testimony

The DJIA today added 92 points to close at a new record high. The cause? Eurozone partners' acceptance of Greece's bailout plan, plus market-friendly words from U.S. Federal Reserve Chairwoman Janet Yellen about interest rates.

Yellen said during her testimony to Congress that the central bank will not raise interest rates for several more committee meetings.

Here are the other top stories from today - plus our new profit tip for investors...

Federal Reserve

Why the Federal Reserve Will Move Rates

To say that markets are confused about when the Federal Reserve is going to raise interest rates is the understatement of the year.

The confusion is understandable. While the U.S. economy no longer needs crisis-era policies like zero interest rates and quantitative easing, the rest of the world is still struggling.

While some would argue that such policies are not the answer, central banks in Europe, Japan and China are doubling down on huge bond buying programs.

The question is whether the Federal Reserve will go its own way or allow weakness abroad to govern its next move...

The Fed

How the Fed Sees Itself Is Not Pretty

The Fed was the center of debate during congressional questioning on Nov. 21.

Sen. Elizabeth Warren compared the Fed's job to that of "a cop on the beat."

In response, New York Fed President William Dudley put his foot in his big mouth.

The Fed

Proof the Federal Reserve Has No Idea What It's Doing

The minutes from last month's Federal Open Market Committee (FOMC) meeting provided zero clarity on the U.S. Federal Reserve's plans to raise interest rates in 2015. The markets need to know when the Federal Reserve might raise interest rates, or at least what economic conditions it will use to make the decision.

But all we get from the Federal Reserve is waffling. And the economic targets that would trigger action get increasingly vague. Meanwhile, the Fed members make things worse by publicly voicing their uncertainty.

Just look at some of these quotes...

The Fed

The Fed's Lost Grip on Interest Rates

As widely expected, the Fed finally ended its massive bond-purchasing program.

Now the market will turn its focus to interest rates.

Will the Fed raise rates next year? If so, what effects will that have?

The Fed is ultimately reactive, exerting little, if any, control in the long run. Low rates are here only as long as the Fed can manage them.

At that point, it is time to look out.

Here's what will cause us nightmares - and what we can do to avert a crisis in our investments...

The Fed

FOMC Meeting: "It's All About Fairy Dust"

With the stock markets still a little jittery after this month's mini-correction, the statements that come out of this week's FOMC meeting (Federal Open Market Committee) will be even more cautious than usual.

"The Fed is all about fairy dust," Money Morning Chief Investment Strategist Keith Fitz-Gerald said in a Wednesday appearance on CNBC World, noting that the Fed really doesn't want to upset the markets right now.

See why CNBC World keeps inviting Fitz-Gerald back...

The Fed

Turn the FOMC Meeting Today into Gains

The FOMC meeting today will mean one thing: accommodative monetary policy is ending.

This may spook some investors who have rode this Fed-driven bull market to big gains.

Here's how you can keep scoring gains even with less easy money flooding the markets.

The Fed

The Fed Balance Sheet Explained

The Fed balance sheet has been expanding at an alarming rate since the financial collapse in 2007.

And there's no surprise the markets have gone along for the ride.

But this week's FOMC meeting will mark an end to that, and no longer will markets be able to fall back on easy money policy.

Here's where the Fed is now, how it got here, and how you can invest around it.

The Fed

Yesterday's Fed News Will Trigger Great Stock Buys,… Just Not How It Intended

I have long said that the Fed has never met a printing press it didn't like nor a dove that it didn't want to set free in the name of higher stock prices. And, yesterday, yet again, Yellen proved it.

Within minutes of releasing its latest set of notes hinting that the Fed will keep rates near zero, the S&P 500 took off on a 34-point gain that is the biggest so far this year. Moving first 45 points from its low of 1,925 to its peak of 1,970 in less than five hours (it later settled slightly lower), the index shrugged off the prior day's losses amidst global growth concerns and weaker European economic data.

This is manipulation of the highest order. It's also proof positive we NEED a correction. Now, more than ever.

A lot of investors will take issue with me on this and I don't blame them one bit - corrections are scary. But, they are also essential when it comes to big returns.

The Fed

FOMC Meeting Minutes Signal a Change in Fedspeak Is on Horizon

The Federal Open Market Committee Meeting (FOMC) meeting minutes were expected to mirror the same sentiments and monetary policy guidelines the U.S. Federal Reserve has been touting for months.

And on that front, this minutes release did not disappoint.

But that doesn’t mean these minutes were not important. Here’s what to look for moving forward…

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