In a surprise move this week, the Federal Reserve decided against reducing its stimulus for the U.S. economy. Investors reacted by pushing the Dow Jones Industrial Average to a new record.
The Fed said it would continue its massive bond-buying program, intended to keep interest rates low, because its outlook for growth has dimmed in the past three months. The central bank is awaiting more proof that the economy is strengthening.
The Fed had been expected to scale back its bond purchases, but rates on mortgages and other loans have jumped up since May, when Fed chairman Ben Bernanke first said the fed might taper the stimulus program later this year. In a statement, the Fed said the rise in rates could slow the pace of improvement in the economy.
What do you think? Did the Fed do the right thing? Vote and leave a comment. Results and a selection of reader comments will appear in next Sunday's business section.