The Fed and the Market

I wondered the same thing: Did Fed Let Expectations Get Out of Hand? Not to mention the fact that this isn't the first time this has happened--where expectations turned potentially good news from the Fed into bad news.

If markets are a matter of expectations versus reality, then the Federal Reserve learned yesterday that letting expectations get out of hand can be costly.

The Fed had spread the idea that it was sure to ease credit again yesterday, and it did. But many had concluded that the cut was going to be bigger than it was, and a result was falling stock and bond prices.