US stocks/Fed: no Santa Ben for stocks

Stock market investors thought the Federal Reserve Board quarter of a percentage point cut in the overnight interest on Tuesday was too stingy. They briefly regained heart on Wednesday on news of global central bank measures to offer additional liquidity. But by Thursday morning, European indices were down by 1% or more. That negative response looks appropriate. The problem for stocks is that while liquidity matters, interest rates matter more. And the Fed’s statement on Tuesday wasn’t encouragi...