The Fed Could Crush the Stock Market Tomorrow, But Don't Panic
Since inflation data for August came in hotter than expected last week, investors have been on edge. The market sent the Dow Jones Industrial Average tumbling by more than 1,100 points last week. Despite the pain, the worst still may be to come, with the Federal Reserve's September meeting kicking off today and wrapping up tomorrow. Here's how the Fed could crush the stock market tomorrow and also why you shouldn't panic.
In August, the Consumer Price Index (CPI), which tracks the prices of a range of daily consumer goods and services, rose 0.1% from July and was up 8.3% year over year. Economists had been penciling in a 0.1% decline from July and the CPI being up 8% year over year. The bigger increase spooked investors because many had assumed that inflation had peaked and could be headed south, but the CPI report did not show this.
Image source: Federal Reserve on Flickr.
Source Fool.com
