The Federal Reserve raises the rate which banks charge each other by 1/4% in a long-anticipated move. The Fed’s discount rate, or the rate it charges banks for money it lends to them, was unchanged. Translation: whew. The stock market takes the 25 basis point move as a final thank you after debating in fear for over 4 weeks now about what Alan Greenspan and the Fed board would do. Bark worse than bite, as I thought may happen.
The known vs. the unknown. A known 25 basis point increase and the move the Fed made seems to indicate that it’s happy with a small hike with perhaps no other moves until more data can flow in the Fall or later.
The current ISDEX value is 554.15 with a change of+31.88(+6.10%)