The Fed Has Decided to Do Nothing -- and That's a Good Thing
Here's a quick primer on the Fed, why you never want a central bank to have to do anything, and the reason why we all hang on Ben Bernanke's every word.
Here's a quick primer on the Fed, why you never want a central bank to have to do anything, and the reason why we all hang on Ben Bernanke's every word.
A new report from the Philadelphia Fed shows America's manufacturing sector is strongly bouncing back. Not only are firms reporting booming activity, strong shipments of goods and more unfilled orders, but jobs are being created at the highest rate in 38 years.
Some investment strategists say it's unwise to "fight the Fed." And right now, Chairman Bernanke wants investors to move into riskier assets, particularly stocks. But these strategists also point to pitfalls if investors aren't careful about how they shift assets.
China reported much higher-than-expected inflation in October as a jump in food costs drove its CPI to a 25-month high. The government will surely try again to further slow economic growth and reach its economic targets.
It's clear the U.S. economy is suffering from a lack of demand. So, this poor report will likely bolster Fed officials who want to keep interest rates low and employ more quantitative easing.
Bernanke's zero-interest-rate policy is backfiring. Only the wealthy benefit from rising financial assets, as average Americans take on more debt and grow poorer. Worse, risky speculation is again being rewarded.
Gold bugs shrug off Tuesday's drop and note that so far, shares of gold miners haven't skyrocketed along with the price of physical gold. So, one pro offers his top-three gold-mining stock picks for investors who are still on the outside looking to get in.
Volatility started picking up in the last few sessions, and now that a downbeat Federal Reserve Chairman Ben Bernanke has made another round of stimulus all but certain, traders are taking notice that things aren't nearly as good as they could be.







