Summary Box: Stocks Rise On Fed's Low Rates Pledge

Published January 25, 2012 9:36PM (EST)

NEW HIGH: The Dow Jones industrial average closed at its highest level since May after the Federal Reserve said it would likely keep interest rates near zero until late 2014. It previously had promised to keep rates low through mid-2013.

BONDS RISE: Bond prices rose, sending their yields lower, because the Fed's pledge indicated that inflation will remain low. Low inflation preserves the value of a bond owner's fixed income.

NO CRYSTAL BALL: The market often reacts strongly to Fed policy. But analysts say that one-day response rarely predicts its direction over the medium term.


By Salon Staff

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