Stock Market Concerns Over Fed Meeting This Week [AUDIO]
Stocks rose Monday as the street of dreams tries to anticipate whether the Federal Reserve will start to wind down its economic stimulus program.
The Fed meets today and Wednesday. High on the agenda will be deciding about the future of so-called “Quantative Easing,” which has been helping the economy recover from the worst recession since the 1920’s.
Some investors are nervous, says Ken Kamen of Mercadien Asset Management in Mercer County.
“So everyone’s waiting with their finger on the trigger, waiting for that signal that it’s time to pull the trigger. So that explains a lot. Listen, markets have so much to do with perception and human emotion.”
But Kamen says long term investors should not fear the end of the Fed’s stimulus so long as most of the economy’s other fundamentals remain strong.
The Dow Jones Industrial average rose 110 points on Monday.
While the two-day meeting begins today, the real bottom line of what, if anything they decide upon isn’t likely to happen until Wednesday afternoon.