The Fed Held Interest Rates Yesterday

And stockmarkets boomed. The Fed said:

"Recent indicators have been mixed and the adjustment in the housing sector is ongoing. Nevertheless, the economy seems likely to continue to expand at a moderate pace over coming quarters.

Recent readings on core inflation have been somewhat elevated. Although inflation pressures seem likely to moderate over time, the high level of resource utilization has the potential to sustain those pressures.
In these circumstances, the Committee's predominant policy concern remains the risk that inflation will fail to moderate as expected. Future policy adjustments will depend on the evolution of the outlook for both inflation and economic growth, as implied by incoming information."

As we know, all the Fed cares about is inflation. If it senses it, it lifts rates. With the economy slowing, the housing business going away, and electronics getting cheaper by the minute, there is little chance of serious inflation. The only inflation is on the farm, where demand for ethanol is driving up the price of corn. Soon oil will rise again. But it's hard to predict when. To read the entire Fed statement, CLICK HERE

Fed: Weaker Economy, More Inflation from Calculated Risk

Eddy looks at The Impact of Interest Rates on Equities

From The Big Picture:

• Not All Rate Cuts Are Created Equal
• Parsing the Fed
• FOMC Statement, Revised for Reality

JEFF MILLER HAS A DASH OF INSIGHT ON THE FED DECISION HERE

FROM SEEKING ALPHA:

• Fed Rate Cut Could Prop Up Housing Market
• Housing Bubble and Real Estate Market Tracker
• More Americans Become Landlords as Rents Rise

So much debt, so many pundits [NY Times]