Fed Loses More Credibility After September Meeting but Investors Don't Care

The Federal Reserve's credibility is dwindling, especially after keeping rates unchanged on Wednesday, but investors don't seem to mind.
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The Federal Reserve's credibility is dwindling, especially after keeping rates unchanged on Wednesday, but investors don't seem to mind, especially with the Nasdaq hitting a record high following the Fed's decision. "Credibility is out the window and forward guidance is dead," said Michael Ingram, a market analyst with CMC Markets, based in London. "In the meantime, risk assets -- party on!" The Fed's statement said the case for a rate hike has strengthened (even though it kept rates unchanged), mirroring language Chair Janet Yellen used in a closely-watched speech in Jackson Hole, Wyo. in August. TheStreet's Scott Gamm reports from Wall Street.