The Fed pulled off quite a coup today as it was able to leave interest rates unchanged at 2.00 percent while convincing Wall Street that the U.S. economy is on the right track for moderate growth in the future. Many were expecting the Fed to cut interest rates by 0.25 percent at today's FOMC meeting, but instead, the Fed said, "Over time, the substantial easing of monetary policy combined with ongoing measures to foster market liquidity, should help to promote moderate economic growth."

This statement, along with taking a stand and not cutting interest rates, convinced Wall Street that the Fed really does see an end to the problems the financial markets have been facing. Plus, Wall Street hates uncertainty, and after today's announcement, there is a lot less uncertainty in the market.

However, all that being said, the major U.S. stock indices still find themselves in a steep downtrend. While today's turnaround was nice, it certainly doesn't give us any indication that the longer-term trend of the S&P 500 is going to be shifting out of its bearish descent any time soon.

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3.25 Copyright (C) 2007 Alain Georgette / Copyright (C) 2006 Frantisek Hliva. All rights reserved."