Fed Chairman Ben Bernanke's news conference is on a television screen on the floor of the New York Stock Exchange Wednesday, June 19, 2013. The Federal Reserve offered a hint Wednesday that it's moving closer to slowing its bond-buying program, which is intended to keep long-term interest rates at record lows. (AP Photo/Richard Drew)
Ogorek: Dow's Drop Post Fed Announcement Not Surprising
Buffalo, NY (WBEN/AP) The Federal Reserve says it will maintain the pace of its program to keep long-term interest rates at record lows, but offered a slightly more optimistic outlook for the U.S. economy and job market. The Dow dropped 206 points at the close, but that's not a big concern to one local financial planner.
"Often what we see is the Dow gives back 200 points, but gets it back in a couple of days," says Tony Ogorek of Ogorek Wealth Management. Ogorek says if the Fed is correct on a strengthening economy, that would lead to interest rates on the rise.
As far as the economy right now, "The economy is not in good shape, it's like it's on a ventilator," explains Ogorek. "You have historically low interest rates, you have banks not doing a lot of lending. People are trying reduce the amount of debt on the balance sheets. We are getting some increase in housing, which is a positive, but the economic growth numbers are anemic."
Ogorek says the markets though will be a status quo until economic numbers come in that will move the needle. He also the markets will look at earnings, issues in the Middle East, and if an immigration reform bill is passed.