Investors uncertain over FOMC meet

Early May was gloom and doom as usual on the equity market. The FOMC voted to raise both the Fed Funds and Discount rates by 50 basis points to 6.50% and 6.00% respectively. The decisive move by the Fed was expected but the accompanying policy statement left investors far from certain about the outcome of the June FOMC meeting. The Committee noted "the risks are weighted mainly towards conditions that may generate heightened inflation pressures in the foreseeable future." Consequently, stock market volatility continued particularly among technology stocks. Towards the end of the mont...