The Fed Meeting | Investor Beat - 3/19/14 | The Motley Fool

TL;DR

The Fed maintains low interest rates without a clear rate hike plan, impacting markets.

Transcript

so just between us girls Janet what you really thinking investor beat starts now thanks for watching I'm Allison Southwick the market didn't do too much today in anticipation of the FED concluding its regularly scheduled full committee meeting fed will release a policy statement and hold a press conference this afternoon outlining their view on the... Read More

Key Insights

• ☠️ The Fed removes the 6.5% unemployment rate target for rate hikes.
• ❓ Market reaction to the Fed meeting is a mix of disappointment and uncertainty.
• 🏍️ Solar City and First Solar show differing performance based on product cycles.
• 🤵 Housing market shows slow but steady recovery with room for growth.
• 😀 Tech giants like Oracle face growth challenges from smaller competitors.
• ❓ Wisdom Tree Investments' decline reflects market valuation concerns.
• 🍉 Yandex presents opportunity despite short-term Russian market challenges.

Questions & Answers

Q: What major change did the Federal Reserve make in its policy statement?

The Fed dropped the 6.5% unemployment rate target for rate hikes and will now use various indicators to determine interest rate changes.

Q: Why did the market sell off after the Fed announcement?

Some investors may have expected the Fed to halt or delay its stimulus reduction, leading to market disappointment.

Q: Why did Solar City take a hit while First Solar rallied?

Solar City focuses on services and benefits from cheaper solar panels, while First Solar's gross margins have declined due to technological advancements.

Q: Is Oracle's slow growth a concern for investors?

Oracle's dominance in the market limits its growth potential, making smaller tech companies like Ultimate Software more favorable.

Summary & Key Takeaways

• The Federal Reserve released a policy statement, maintaining low interest rates.

• The Fed no longer targets a specific unemployment rate for rate hikes.

• Market reaction and investor expectations are mixed post-Fed meeting.