Fed Keeps Rates Steady

THE FEDERAL RESERVE HELD THE LINE ON INTEREST RATES.
AS EXPECTED, POLICY MAKERS DECIDED TO KEEP THE KEY RATE IN A RANGE OF ZERO TO A QUARTER PERCENT. AND THEIR STATEMENT ON THE ECONOMY WAS SLIGHTLY MORE UPBEAT THAN LAST TIME, SAYING ACTIVITY HAS PICKED UP - AND THE HOUSING MARKET IS STARTING TO IMPROVE.
THE STOCK MARKET REACTED LIKE A ROLLER COASTER...FIRST WITH A RALLY THAT PUSHED THE DOW OVER 99-HUNDRED FOR THE FIRST TIME IN NEARLY A YEAR. BUT BY THE CLOSE, STOCKS HAD TURNED THE OTHER WAY. IN THE END, THE BLUE CHIPS DROPPED 81 POINTS. THE NASDAQ LOST NEARLY 15.
APPLE'S STOCK SHOT TO ITS HIGHEST LEVEL OF THE YEAR. INVESTORS JUMPED ON NEWS..THAT SOUTH KOREA HAS GIVEN APPROVAL FOR THE IPHONE TO BE SOLD THERE. THAT'S A BIG SHAKE UP FOR THE COUNTRY'S TELECOMMUNICATIONS MARKET, WHICH IS CURRENTLY DOMINATED BY DOMESTIC MANUFACTURERS LIKE SAMSUNG AND L-G. JUST LAST MONTH, APPLE SEALED A DEAL TO SELL THE IPHONE IN CHINA.
THE PRESIDENT'S PLAN FOR OVERHAULING THE FINANCIAL SYSTEM IS FACING A BATTLE ON CAPITOL HILL. TREASURY SECRETARY TIM GEITHNER APPEARED BEFORE CONGRESS TO DEFEND THE GOVERNMENT'S PROPOSAL. BUT HE BACKED AWAY FROM THE CONTROVERSIAL PLAN TO REQUIRE BANKS TO OFFER SO-CALLED PLAIN VANILLA PRODUCTS. THOSE ARE BASIC, LOW RISK OPTIONS LIKE 30-YEAR FIXED MORTGAGES. CRITICS HAD SAID THAT PLAN GIVES THE GOVERNMENT TOO MUCH POWER.
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