Weekly Wrap: Markets, Moody’s and the Fed
John Carney from CNBC and Leigh Gallagher from Fortune Magazine for a wrap up of this week’s biggest business stories, including the credit downgrades of the big banks.
On the Moody’s downgrade:
John Carney: First of all, they telegraphed that this was coming — four months ago, they put them all on credit watch, so everybody knew that they were reviewing the credit worthiness of the banks. So a lot of the downgrades had already been — as they say — priced into the market, and people were actually relieved that the downgrades were worse than they were, that the banks weren’t cut even further. And on top of that, you had the feeling that well, OK, this was the cut that was coming, and probably things are going to stay right where they are for quite some time.
On the Fed’s uneventful press conference this week:
Leigh Gallagher: It’s kind of been the week of that. We had the president’s press conference on Monday night. There’s been a lot of non-movement, and a lot of fanfare around that non-movement. I think it’s because people are — everybody’s a little bit nervous that things are starting to teeter a little bit more than it seemed than just a few weeks ago or a month ago.
For more analysis, listen to the full audio.
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