Posts Tagged ‘Fed’
Bernanke’s Fed Fails
Yes, Ben Bernanke has run out of ammo, leaving him to sit there with his fingers crossed as he lets the market take on it’s own course. The Federal Reserve released minutes and has announced yesterday that our economy hasn’t seen the worst of it yet. The economic growth forecast for 2008 is as hopeful as Gary Coleman hitting 5 feet tall. Bring on the inflation and unemployment. Want to see the numbers? Taken from an article on Forbes.com:
“the central bank now expects 2008 GDP in a 0.3% to 1.2% after the downward revision, unemployment of 5.5% to 5.7%, and inflation of 3.1% to 3.4%.”
After the release of the Fed’s minutes, the already struggling market took another blow.
“The Dow dropped 189 points, or 1.5%, to 12,640, with much of the decline coming after the Fed minutes hit. The S&P 500 lost 17 points, or 1.2%, to 1,397, and the Nasdaq shed 35 points, or 1.4%, to 2,457.”
Not only that, but travelers will be feeling the heat immediately. Due to rising gas prices, which by the way oil hit a record breaking $134 a barrel today, airline stocks plummeted. American Airlines cut their fourth quarter capacity by up to 12% and put 75 planes to rest. American Airlines will also be raising passenger fees and charge $15 for your first checked bag. With news like this, it makes me apprehensive to start my investing plan at the end of this month and revert to strictly saving, but I must practice what I preached in my previous post, “Psst! Want to know the best time to invest?“. Wish me luck.
