The Federal Reserve Just Did Something That No One's Witnessed in 56 Years -- and It Has Significant Implications for the Stock Market
A Fed divided against itself cannot stand.
Overview
Last week was a tone-setter for Wall Street. It marked the busiest week of the third quarter for earnings releases and featured a Federal Reserve interest rate decision.
But on July 29, the day Fed Chair Kevin Warsh and the Federal Open Market Committee (FOMC) announced that they were leaving interest rates steady, the Dow Jones Industrial Average (DJINDICES: ^DJI), S&P 500 (SNPINDEX: ^GSPC), and Nasdaq Composite (NASDAQINDEX: ^IXIC) tumbled. In fact, it was the Dow's worst single-session performance in more than a year.
Details
Moreover, it was a history-making FOMC meeting in more ways than one. Wall Street and investors witnessed something that hasn't happened in 56 years at America's foremost financial institution, which has significant implications for the stock market.
Source
Originally published at www.fool.com.