At the midway point of the final trading week of January, U.S. stocks plummeted again following the release of a statement from the Federal Reserve declaring that the Board of Governors had decided to leave short term interest rates unchanged. The central bank said after its two day policy meeting:
“The Committee is closely monitoring global economic and financial developments and is assessing their implications for the labor market and inflation, and for the balance of risks to the outlook. Given the economic outlook, the Committee decided to maintain the target range for the federal funds rate at 1/4 to 1/2 percent. The stance of monetary policy remains accommodating, thereby supporting further improvement in labor market conditions and a return to 2 percent inflation.”
“People are just jittery and it will take time for things to settle out. … I think the market being down is just indicating it’s a tough market right now and people are nervous.”
Meanwhile, Investment advisor and fund manager Marc Faber, publisher of the “Gloom, Boom & Doom Report” & guest of the Crash Proof Retirement Show told attendees at the annual “Inside ETFs” conference recently that-
“The medium-term economic outlook has become “so depressing” that I might as well fill a newly installed pool with beer instead of water.”
Watch what Marc Faber had to say about the current global financial situation on CNBC below.
Here are the final numbers from Wednesday, 1/27/16 on Wall Street.
Dow Jones Industrial Average: 15,944.46 (-222.77 / -1.38%)
NASDAQ: 4,468.17 (-95.51 / -2.18%)
S&P 500: 1,882.95 (-20.68 / -1.09%)