Equity Markets Disappointed with Fed's Caution
On Tuesday, December 11, the Federal Reserve lowered the Fed Funds target by 0.25% to 4.25%. While easing by the Fed is ordinarily welcomed by the equity markets, by the end of the day the S&P 500 Index slumped over 2.5% and the Dow Jones Industrial Average sank by 294 points.
Investors appear to be worried that the Fed is overly concerned about inflation and not adequately focused on avoiding an economic recession. For Bloomberg's overview of today's Fed decision and the markets' reactions, click here.