The Federal Reserve is holding off on any new actions to help the economy because stronger growth is giving it time to gauge the impact of steps it's already taken. Fed policymakers made the announcement after a two-day meeting.
The U.S. services sector is growing strong, providing additional evidence that the U.S. economy is recovering and might not need more stimulus funding. But that's contingent upon oil staying below $120 per barrel.
The Fed%u2019s latest Beige Book report finds that economic growth has increased but also that the economy is still growing well below its potential and too slowly to substantially lower unemployment.
Plenty of good news may be getting overlooked in a market gripped by one form anxiety after another. That pervasive fear has investors crowding into government bonds. It could also create a good window to get into undervalued stocks.
In testimony on Capitol Hill, Fed Chairman Ben Bernanke said that the central bank is ready to act in an economy that is "unusually uncertain." Bernanke's comments spooked the markets, which dropped precipitously as he spoke.
The minutes from its June meeting raise some warning flags about growth and unemployment. Still, the Fed's latest forecasts are just slightly more pessimistic, and it has ruled out any further stimulus actions -- at least for now.
