Fed Helps Market Go Up

The DOW went up over 400 points on Tuesday. This was made possible by the short-term interest rates reduced that The Federal Reserve made for the sixth time in six months, as its continuous attempt to strengthen the economy. The central bank lowered its federal funds rate by three-quarters of a percentage point, to 2.25%, leaving the option for future cuts in the upcoming months. It was one of the biggest one-day rate cuts in decades. Inflation had been elevated, and some indicators of inflation expectations had risen, with this it was going to be necessary to continue to monitor developments carefully. Investors reacted to the initial news of the Fed cut but pushed stock prices sharply higher by the end of the day.