Investors Worried About An End To Stimulus Measures
November 03, 2009 8:52 AM
The Wall Street seems to be apprehensive about the future of the Stimulus policy. Many have a feeling that if the federal government decides to halt the liquidity measures, will the consumers spend more? Will that be sufficient for the economy to register the same growth achieved in the 3rd quarter?
Reuters quoted Fred Dickson, Market strategist, D.A. Davidson & Co. as saying that the growth of the economy will be at a little slower pace than what was achieved in the 3rd quarter. Markets are also bracing for a hint that could indicate inching up of interest rates late next year. This hint may originate from the Federal Open Market Committee's statement, expected on Wednesday. Also worrying is the upcoming forecast on the U.S. unemployment rate. In September it was 9.8%. Many expect it to rise to 9.9 percent in October (the figures are yet to come in). That may reduce consumption and with that the GDP growth.
