oreo
Investor
- Reaction score
- 2
http://www.usatoday.com/money/markets/2007-08-21-stocks-tues_N.htm
Traders at first liked comments from Senate Banking Committee Chairman Christopher Dodd that Fed Chairman Ben Bernanke isn't satisfied with Wall Street's response to his efforts to stabilize markets torn by anxiety about shrinking credit. Dodd, after a meeting with Bernanke and Treasury Secretary Henry Paulson, said policymakers plan to use "all tools available" to complete its mission.
But, a hawkish speech by Fed President Jeffrey Lacker erased most of the session's gains. He said policy must be guided by fundamentals, rather than market swings — a signal that a cut in the benchmark federal funds rate cut might not be among the tools the Fed plans to use.
"There are two camps out there, one that thinks we need a rate cut and the other doesn't feel the economy has slowed enough to warrant one," said Janna Sampson, director of portfolio management at Oakbrook Investments. "I think which camp leads on each day, or even each hour, is what is leading to all this volatility. There's just too much uncertainty."
Traders at first liked comments from Senate Banking Committee Chairman Christopher Dodd that Fed Chairman Ben Bernanke isn't satisfied with Wall Street's response to his efforts to stabilize markets torn by anxiety about shrinking credit. Dodd, after a meeting with Bernanke and Treasury Secretary Henry Paulson, said policymakers plan to use "all tools available" to complete its mission.
But, a hawkish speech by Fed President Jeffrey Lacker erased most of the session's gains. He said policy must be guided by fundamentals, rather than market swings — a signal that a cut in the benchmark federal funds rate cut might not be among the tools the Fed plans to use.
"There are two camps out there, one that thinks we need a rate cut and the other doesn't feel the economy has slowed enough to warrant one," said Janna Sampson, director of portfolio management at Oakbrook Investments. "I think which camp leads on each day, or even each hour, is what is leading to all this volatility. There's just too much uncertainty."
