The Reaction to The Fed's Decision Will Be Felt Beyond the Markets
By Joe Duarte
"It's not the heat, it's the humidity." This overused cliché uttered by Americans during summer heat waves is a light-hearted remark designed to cope with environmental misery. But the phrase also can be useful as a metaphor in other arenas, such as the U.S. economy and the financial markets.
Of course, in the real world, summer eventually turns into fall and eventually winter, offering relief from the heat. In the stock market, even though trends eventually reverse, in the heat of the moment, it's the market's reaction that sets the tone for what's next, often with little relief for many.
By the time this article is published, the Federal Reserve will have made its intentions known regarding its plans for the future of interest rates. The markets will have moved. In a complex world, ripples in ponds may turn to tsunamis. Tsunamis have long-lasting effects.
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