Congress May Consider Stimulus for Economy, ETFs
October 21st at 10:00am by Tom Lydon
The idea of another economic stimulus bill is gaining traction, but what it will mean for the economy and exchange traded funds (ETFs) down the road is still a question market.
Federal Reserve Chairman Ben Bernanke suggested a second round, and President Bush seems open to the idea, reports Andrew Taylor for the Associated Press. Democrats say another bill would include items previously rejected, such as road and bridge construction money and help for state budgets. Tax rebates are also possible.
Congress will return in November, though, and a lot could change between now and then.
The Federal Reserve said today that it’s going to start buying commercial paper from money market mutual funds. The paper is a funding mechanism that many companies rely on to get by each day and fund their operations, so this move could help unclog the credit markets further. An array of paper will be bought, including some that isn’t backed by assets, says Jeannine Aversa for the Associated Press.
After rising yesterday, oil is now back below $72. Investor demand for commodities has been dented and seemingly outweigh any concerns of an OPEC production cut, reports Stevenson Jacobs for the Associated Press.
United States Oil (USO) is down 18.5% year-to-date.
Gas keeps heading south, as well, dropping to a national average of $2.89 a gallon. United States Gasonline (UGA) is down 29.8% since its Feb. 28 inception.
