3 stories to finish up the day:
1. After stating that the economic recovery is shaping up to be “more modest in the near term than had been anticipated,”Federal Reserve Chairman Ben Bernanke affirmed the same language we’ve been hearing for a couple years – that rates will “remain at exceptionally low levels for an extended period.”
As business hiring and household spending have slowed in recent months, there have been growing concerns that the economy is at risk of falling into a so-called double-dip recession, although the Fed did not raise that specific risk in its statement. As expected, the fed funds rate, the central bank’s key tool to spur the economy, remained near 0%, where it has been since December 2008. The rate is used as a benchmark for interest rates on a wide variety of consumer and business loans. A low rate typically spurs spending by making it cheaper to borrow money.
The Fed also announced that it will use proceeds from mortgage backed securities to purchase bonds in the open market. After the DJIA slid nearly150 points off the session’s open, it recovered dramatically later in the day.
The markets were reassured by the move. Major stock indexes, which had been sharply lower before the Fed statement, recouped most of their losses on the news, with the Dow Jones industrial average briefly moving into positive territory on the day. Bond prices rose on the news, driving the yields on the benchmark 10-year Treasury down to 2.74%, the lowest level since December 2008.
3. Amanda Drury showed about as much cleavage as you’ve ever witnessed on a news network for several hours.
Filed under: Very Serious Business | Tagged: amanda drury, ben bernanke, cnbc, dis, disney, economics, extended period, fed, fed funds, federal reserve, house of mouse, interest rates, major boobage, mickey mouse |