Fed Leaves Door Open for Stimulus
- Posted on September 21, 2010 at 3:33pm by
Jonathon M. Seidl
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NEW YORK (AP) — Stocks and bonds rose Tuesday after the Federal Reserve said it was ready to provide more help to the economy if necessary.
The Fed didn’t announce new purchases of government debt or other specific measures to help the economy now, but it did leave the door open to such steps in the future, as investors were hoping.
The central bank said that inflation remains below levels that indicate a healthy economy, and that it was ready to act to provide “additional accommodation” to support the recovery. That could mean more purchases of Treasury bonds or other debt, which would keep interest rates low and hopefully encourage borrowing.
Stocks had been trading lower ahead of the Fed‘s announcement but turned higher in the afternoon after the central bank’s statement was released.
The Dow Jones industrial average rose 38.14 points, or 0.4 percent, to 10,791.76. It had been trading slightly lower for most of the day.
Broader indexes were mixed. The Standard & Poor’s 500 index slipped 0.11, or 0.01 percent, to 1,142.60, while the Nasdaq composite rose 0.47, or 0.02 percent, to 2,356.30.
Treasurys rose after the Fed’s announcement, sending interest rates lower. The yield on the 10-year Treasury note fell sharply to 2.60 percent from 2.70 percent the day before. Its price jumped 90.6 cents to $100.18. The yield is a common benchmark for setting interest rates on corporate debt and mortgages.
The gains in stocks extended a three-week rally that has defied expectations of a slump in September, which is historically a weak month for stocks. The Dow is up 7.9 percent so far this month, and broader indexes are up even more. The S&P is up 9.1 percent, the Nasdaq 11.6 percent.
Stocks have rallied throughout the month on signs that the economy continues to grow, even though the expansion remains sluggish. In the latest signal, the Commerce Department reported that construction of homes and apartments rose last month to the highest level since April. Building applications, a sign of future activity, also rose in August.
In corporate news, steep discounts and higher costs drove ConAgra Foods Inc.’s fiscal first-quarter profit lower. Shares of the company, which owns the Chef Boyardee and Peter Pan foods brands, dove 96 cents or 4.3 percent, to $21.41.
Cruise line operator Carnival Corp. reported a 22 percent jump in quarterly profits as demand was strong during the summer. It also raised its full-year earnings outlook well above analysts’ forecasts. Shares rose 63 cents to $37.69.
Clorox Co. said it would sell its car-care brands such as Armor All and STP to a private equity firm for $780 million in cash. Clorox shares fell 73 cents to $66.88 after announcing the sale of the division, which had accounted for about 5 percent of its total revenue.
The dollar fell against other major currencies, while gold prices continued to hover near record highs.
Rising stocks were about even with falling ones on the New York Stock Exchange where volume came to 700 million shares.
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RightPolitically
Posted on September 21, 2010 at 10:53pmMore shot term tinkering that will leave the country with more long term debt. Why don’t the geniuses take a “chill-pill,” sit down and stay out of it. If the so-called experts had let the free market operate and do what it does best, straighten out messes created by government fiscal ineptitude, we’d be on our way by now.
Report Post »Psychosis
Posted on September 21, 2010 at 9:13pmwhat EVERYONE IS MISSING………..the transfer of wealth that these people are talking about is not what Americans think it is. This is not a transference or redistribution of wealth from rich Americans to poor Americans….. dont seem to grasp the true concept. This is a redistribution of wealth FROM America to the rest of the poor……in the REST OF THE WORLD. You have to realize every American is considered rich compared to most median calculations of income to other countries. They have already started the machine by Obama shutting down drilling and giving upwards of 4 billion dollars to Brazil and Mexico to do exactly what Obama has shut down the U.S. from doing. In the same area in order to “save the world and environment.“ This was not done to ”save the environment”, but was done to limit our production and greatly assist in a poorer country to produce a product that we then will be forced to purchase from them. This has allready started with solar panels and light bulbs- (of all things……cheap to us right now, and you say so what, but everything is cheaper to make elswhere….mexico/ china etc. with the de- industrializing of our nation helped along by union reps (not union members mind you ) whose self stated goal is a world union….WORKERS OF THE WORLD UNITE……WORKING IN COLUSION WITH THIS OBAMA ADMINISTRATION and the FED in their goals to create a world bank and a world government that will strip America of its wealth and spread it around with them in control of everything this IS COMING AND MUCH SOONER THAN YOU THINK UNLESS WE STAND UP AND STOP IT
I do not believe our government has the countries best interests as a goal. I know these videos are kinda long but if you watch these videos and then look at the goals of the big union bosses words of a world government, the veiwpoints and ideologies of all the people working with this administration who controls the fed bank and glenn becks 9/21 show it will help you all to make a decision on what these peoples goals really are.
http://www.youtube.com/watch?v=eAaQNACwaLw
http://video.google.com/videoplay?docid=5232639329002339531#
Report Post »unionrockstar
Posted on September 21, 2010 at 7:08pmKeep in mine……….The Fed has the printing presses
Need I say more?
Report Post »ThelittleRedheN
Posted on September 21, 2010 at 6:40pmOur world is about to change…………………
Report Post »RobR
Posted on September 21, 2010 at 6:03pm…….what the article failed to explain was that they were referring to the back door of the American people. What ever you do look behind you, before you bend over, because the “ Obama Socialist Regime ” is hell bent on have their way with you……..remember to them…..NO means yes……we’re just too damn stupid to know any better.
Just ask Bill Mahr……he knows all about it.
Report Post »CoFX
Posted on September 21, 2010 at 6:02pmWait a second – didn’t I read just the other day that the recession officially ended in June of 2009? And wasn’t the summer of recovery such a smashing success? I thought everything was better!
Report Post »5412
Posted on September 21, 2010 at 5:50pmCheck the gold and silver charts for the day and notice the jump after the announcement. Gold jumped over $20 oz. The world is on to our shell game and metals are quickly becoming the safe haven currency. Both had been tanking up to the announcement and gold immediately hit a record high.
Report Post »chazman
Posted on September 21, 2010 at 5:15pmHow do we really stop the fed? Audit the fed? How do we do that? Through our votes? Does that make us strong enough to defeat the uber rich elites? Is this something we can do without a purge of the elitest class? What’s to keep them from trying to purge us? I wonder if we aren’t the terminal generation, the ones our parents and grandparents knew would see these days we are living right now. Lock and load, boys and girls! This vet ain‘t goin’ down without a fight!
Report Post »HiredMind
Posted on September 21, 2010 at 5:13pm“Great! We got this stimulus monster running around draining businesses of their lifeblood, and you leave the door wide open!”
Report Post »AsianForTeaPartyConservative
Posted on September 21, 2010 at 5:04pmThe FED Federal Reserve is an entity, I have yet to understand. It seems to me that the FED is a Mafia organization that is untouchable. I hope Glenn Beck would feature a show uncovering the Federal Reserve. How exactly do they operate? Where is the money coming from? Why is there no accountability? Why can’t we investigate the FED? We need to know in detail the ins and outs of this organization.
Report Post »Beckofile
Posted on September 21, 2010 at 4:45pmPaper is the ghost of money….Get some Gold….Real currency. It buys the comprable of what it has always bought. How is that $20 bill doing since the early 1920′s? Have fun at McDonalds with your paper because the metal one is at $1280 or so:)
Report Post »poverty.sucks
Posted on September 21, 2010 at 4:40pmNew Home Construction and Apartments isn’t what we need. Economist may need that as an indicator, my finger indicator points to outside revealing homes in disrepear, dilapidated apartments creating a breeding ground for crime. Invest in companies who refurbish homes and apartments and renew historic neighborhoods. There are plenty of empty homes and businesses.
Report Post »verb
Posted on September 21, 2010 at 4:27pmBen left thbe door open for printing … Republican’s after mid-term will block stimulus. At least I hope.
BTW … Summers is gone after the elections … rofl.
Romer, Orszag and Summers are gone. Only Tim G left. Ouch … storm‘s a brewin’.
One thing is certain … Larry is a survivor and his imminent departure provides the strongest signal yet that all is not quite as it seems.
Report Post »Red Neckerson
Posted on September 21, 2010 at 4:17pmThe bankrupting of America is right on schedule. America must be bankrupted for it to capitulate to United Nations rule under the G-20, G-8, G-7 or G10 nations. The New World Order and global monetary fund must be in place for the anti-christ to rule.
Report Post »LBreath
Posted on September 21, 2010 at 4:14pmBuying and selling money is getting us nowhere. The banks that receive the bailout are the same ones that manipulate the market through speculative buying and selling. When they guess wrong, they ask for more money. How many new employees have they hired lately?
Report Post »Contrarian51
Posted on September 21, 2010 at 7:42pmI don’t think the numbers are out there yet but I can name one (Bank of America) that looks to be getting ready to let some go. Close enough, I guess.
Report Post »grnhrn
Posted on September 21, 2010 at 3:56pmPLEASE no more either your company is self sufficent or it is not stop the madness china doesn’t have any more room in the us iou vault
Report Post »Contrarian51
Posted on September 21, 2010 at 3:54pmAny more, every time I see the word “stimulus” my sphincter just tightens up like crazy.
Audit this sucker.
Report Post »texasred
Posted on September 21, 2010 at 4:51pmCouldn’t agree more. Ron Paul has been trying to get the Fed to open their books for years, but to no avail. Stop the insanity.
Report Post »Psychosis
Posted on September 21, 2010 at 3:46pmNO………..no more BAILOUTS. This is fiat money. expose the fed for what it is. This is a private bank bilking generations to come and must be stopped. the fed is NOT part of the us government.
AMERICA NEEDS TO TAKE BACK CONTROL OF ITS MONEY
Report Post »Marylou7
Posted on September 21, 2010 at 3:55pmTotally agree.
Report Post »Psychosis
Posted on September 21, 2010 at 9:14pm……………………………..See my post below go to links…………………………………………..
……………………………………THIS IS IMPORTANT……………………………………………………………….
Report Post »crossdraw
Posted on September 21, 2010 at 3:42pmWhen are REAL Americans going to wake up and demand this non-government sideshow be audited. An entity with this much power needs to scrutinized on a daily basis. This entity, “the fed,” is not even a government entity so who have they screwed to get their power. Expose the fed and see where are troubles come from.
Report Post »Rev. WC
Posted on September 21, 2010 at 3:40pmThe Feds helping the economy? Am I missing something?
Report Post »Venom
Posted on September 21, 2010 at 3:45pmYeah i love all this before the election…
Report Post »Beltfeed
Posted on September 21, 2010 at 4:09pmFree Obama Dartboard
Free Printable Obama Dartboard Game all you need to do is print it out and the fun can begin……. ;-)
http://s784.photobucket.com/albums/yy127/beltfeed/Political/?action=view¤t=ObamaDartboard.jpg&newest=1
Report Post »wingedwolf
Posted on September 21, 2010 at 5:44pmBeltfeed you’re a prince! I am going to have so much fun with this!
Report Post »AnnMarie
Posted on September 21, 2010 at 5:44pmI personally cannot wait until November when hopefully we will get a new group in Washington. And then off to 2012 where we will get someone new then as well. I am an Independent who is sick of what is being done to this country.
Report Post »5412
Posted on September 21, 2010 at 5:48pmHi,
Gold and Silver were way down and both shot up a bunch after the announcement. The world is on to our shell game and metals are becoming the safe haven. Gold alone jumped something like $20/oz
Report Post »Joe Potus
Posted on September 22, 2010 at 8:33amInflation is too low to indicate a healthy economy? ah yes… the calculation is now both X-food and X-energy. Thanks big O for the X-food as we all eat our cake. People, track your own inflation and keep a weather eye on your storehouse. .3% on a CD or 6 months of food… why not bank the food as it is going up by 20-50%.
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