If the feds leave the rate unchanged this Wednesday, historically what does the market do? What will the market do? Will we see a sell-off on Wednesday and the following days? Also, why is an unchanged rate considered bad by the market? or am I wrong? Just trying to learn...
1) The Fed's action has to be compared to expectations of their action, not the action itself. 2) The market appears to be expecting "no change" to the funds rate. 3) The Fed's additional statements about future prospects and the condition of the banking system will probably have the most impact on the market after the announcement comes out. 4) If energies, metals and grains keep falling, that can remove some pressure to raise rates. The stock market ought to rally. We'll see.
How long does it take the market to absorb the decision and future decisions about the rate, several days, weeks..