Fed halts rate increases - but market not happy

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The stock market wasn’t too excited about the news that the Fed would hold steady on interest rates. Some had feared that the Fed might continue to push rates skyward, which would probably have a debilitating effect on already-slowing economy. With soaring gas prices, you might think that would be a recipe for disaster.

This was the first time in two years that the Fed didn’t raise rates, which caused people to think that the economy may have petered out:

The decision to take a breather comes as economic growth is slowing — a development that Fed policymakers suggested should eventually help lessen inflation risks posed by lofty energy prices.

Without a doubt, energy prices continue to concern everyone. As gas prices soar, consumers have less money to spend on other products and services.

The fear of inflation is also a big deal to anyone who’s considering investing. It is realistic to consider the current investing environment as being quite dicey. We’ll see if the waters calm soon.

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