14 Dec 11 Markets back off after Fed meeting; hold gains

New York, NY, United States (AHN) – Federal policy makers left interest rates unchanged Tuesday and also made no change to its policy of selling short term holdings and reinvesting them into longer term securities.

The Fed also reiterated its pledge to keep rates at low levels through the middle of 2013.

The Fed said the economy is moderately expanding despite some apparent slowing in global growth. They cited the high unemployment rate as being a drag on the economy.

As with its last meeting, the Fed voted 9-1 in favor, with the sole holdout being Chicago Fed President Charles Evans who asked for additional policy accommodations.

Immediately after the announcement, the Dow Jones Industrial Average dropped from the day’s high. At 2:30 p.m., the Dow held on to a 54-point gain, the Standard and Poor’s 500 Index was struggling to stay in positive territory, and the NASDAQ edged down 2 points.

Oil was up $2.45 to $100.46 a barrel, and gold was down a meager $5 at $1,662.80 a troy ounce.

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