The Door Wide Open

The Fed stayed on hold and expressed concerns over inflation.

The Fed wasn't as hawkish as some expected, wanted or feared especially since the European Central Bank is widely expected to hike interest rates next week. In fact, in my view they left the door wide open for further rate cuts if and when they need to. Bernanke is unwilling (and many think unable) to take the punch bowl away now and mostly likely will be for some time. No change there.