The Federal Reserve didn’t raise interest rates today because of concern about the global economic situation. So the Fed Funds rate has been essentially flat at about .14% for almost 7 years now. By not raising rates today, the Fed spoke loud and clear. It says volumes about what is really going on.
The market’s reaction to China and other things has the Fed’s attention. But what Chairwoman Yellen also talked about was the lowering of the inflation curve out into the future. They are not seeing inflation coming back and there is a real concern about deflation getting a strong toehold globally.
The Fed meets again in October and December so there still is an opportunity to raise rates then. The DJIA was up 193 points at its intra-day high and closed down 65 points at 16,674.70. In the Weekday Market Wrap video below I look at the market action and CAT, WYNN, EXPE.