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Markets Aug 5
The Federal Open Market Committee kept today its target for the federal funds rate at 2 percent. The Committee said, it expects inflation to moderate later this year and next year, but the inflation outlook remains highly uncertain. The Fed also added that easing of monetary policy, combined with ongoing measures to foster market liquidity, should help to promote moderate economic growth.
Separately, financials continue showing strength, benefiting from overseas gains in response to better-than-expected earnings from Paris-based Societe Generale.
In economic news, a better-than-expected July ISM Services report sent the market to its best levels today, indicating business conditions aren't as weak as widely reported, granted -- conditions are still not ideal. The reading rose to 49.5 from 48.2 in June, which topped the average estimate of 48.8. Dow up almost 270 pts for the session.
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