Fed Rate Hike Delay Leads to Rise in Stocks

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As you may have heard, the federal government recently decided to stall any kind of rate hike. On the surface, this means that the American dollar is, theoretically, in line to have a stronger showing on the world stage. What may be an even better bit of news for those who follow this kind of information is that markets are growing more and more sure that the Federal Reserve will not be raising interest rates for the foreseeable future.

Because of this, stockholders are seeing a surge to their holdings this week. Even those who do not directly deal with the active trading of stocks can benefit from this as most modern retirement plans use the stock market to keep plans’ values rising.

What is a little bit of a letdown is the fact that a good portion of the reason that there was not a rate hike was because of the slow job growth rates in the United States. While that might not sound like good news, though, it does make some sense when you take into consideration that the job market in the US has been particularly good in recent months. To elaborate, there unemployment rate in the US has been rather low recently and the fact that there hasn’t been very many new jobs added to the workforce could be seen more as a sign that businesses and governments are seeing fewer applicants overall.

Has the rate hike delay been a good thing for you thus far? What are your opinions on the matter? Let us know in the comments below.

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