U.S. Federal Reserve Chairman Ben Bernanke’s shocking Federal Open Market Committee announcement Tuesday — that its zero-interest-rate target would be extended for two more years through the middle of 2013 — drove Dow stocks up more than 400 points. But this new policy had no stock market carry-over on Wednesday, when the Dow plunged more than 500 points. We have not heard the last from Bernanke — not by a long shot.
Buried in the last paragraph of this week’s surprise FOMC announcement was this huge statement: “The Committee discussed the range of policy tools available to promote a stronger economic recovery in a context of price stability.”
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