The Bears Criticize The Fed’s Move, ETFs and the Market

After the Federal Reserve’s rate cut, stocks and exchange traded funds (ETFs) finished their best week since March.  Yet some financial analysts are wary to rejoice, as they believe the markets are being manipulated to create an inflationary boom, reports Peter Brimelow for MarketWatch. Gold prices soared last week to a 28-year high; gold is where investors go during inflation.  These analysts also point out that higher inflation is a possibility with rising oil prices and a falling dollar.  However, with credit risks affecting global markets, the Fed felt intervention was necessary and responded with lowering rates.  Investors seemed to like the move, as they jumped back into the market.