Wednesday, August 26, 2009
Market Reflections 8/25/2009
The re-appointment of Fed Chairman Ben Bernanke ends the risk of delays that a new chairman would face in learning the post, specifically how the Fed is going to unwind quantitative easing. Consumer confidence data shows improvement, not striking improvement but an end to two prior months of disappointment. Budget forecasts from the administration and Congress say weak growth and heavy benefit spending will just about double the nation's deficit to nearly $20 trillion over the next 10 years. Stocks showed little reaction with the S&P rising 0.2 percent to 1,028. Commodities were little changed though oil edged back from recent highs ending at $72. The dollar index ended fractionally higher at 78.24.