The Dow recovered almost 430 points Tuesday, after the Fed said it would keep short-term interest rates low until mid-2013. But the Fed's surprise move also points to expectations for slow recovery.
The markets are counting on Washington to raise national debt ceiling by Aug. 2, but that's not all. Wall Street also expects a deal that cuts the size of US budget deficit. How much is it looking for?
Wall Street insiders aren't worried the government might hang an 'out to lunch' sign. The market improved during the 1995 government shutdowns. Of greater concern: raising the debt ceiling.
On Wall Street, Goldman Sachs is admired to a certain extent for its ability to generate profits. But the firm is also resented for a certain swagger.
Some key lawmakers in the Senate are saying they will vote against the Bernanke confirmation. The Fed chairman’s term expires at the end of this month.
The bankers should pay, Obama says. But some think the money would come out of shareholders’ pockets, and others say the big banks would pass it along to consumers and businesses.
Though problems remain for housing and jobs, the Fed's Open Market Committee sees further improvement in financial markets in recent weeks.
The Fed chairman, who is all over the TV news shows this week, may be angling for reappointment in January.
CIT is one of America’s largest lenders to small businesses. It also made many subprime mortgage loans and is now seeking US assistance.