The Federal Open Market Committee concluded its two-day meeting today and kept the fed funds target at a range of 0.00-0.25%. They expect that economic conditions are likely to warrant exceptionally low levels of the fed funds rate for some time. The Fed maintained their commitment to use all available tools to promote economic growth and price stability and they were prepared to purchase longer-term Treasury securities to jump-start lending.
Stocks finished solidly higher as financials rose almost 13%, on optimism following reports that the Obama Administration is close to establishing a bank that would buy bad banking assets aimed at jump-starting lending.
The Dow Jones Industrial Average rose 201 points (2.5%) to close at 8,375, the S&P 500 Index gained 28 points (3.4%) to 874, and the Nasdaq Composite advanced 53 points (3.6%) to 1,558. Crude oil gained $0.58 to $42.16 per barrel, and gold ended down $11.90 at $887.60 per ounce.
Magnificent Seven Update
