The Federal Reserve announced yesterday that it will maintain its current pace of bond purchases because it thinks the economy still needs the support. The Fed decided to hold off on slowing the $85 billion a month in bond purchases, for now, to ensure the economy's recovery is sustainable. Those bond purchases are intended to keep long-term loan rates low in order to help spur borrowing and spending.Many thought the Fed would scale back on its purchases, despite mixed economic reports, but the fact that they didn't sent the stock market soaring to all time highs yesterday.
The Dow Jones Industrial Average spiked 147.21 points to close at 15,676.94, the NASDAQ jumped 37.94 points to 3,783.64, and the S&P 500 surged 20.76 points to 1,725.52, beating its previous all-time high of 1,709.67 set back on Aug. 2.
The Republican controlled House of Representatives is set to this week on a temporary funding bill, which, aside from trying to prevent a government shutdown on October 1, will also defund President Obama's signature health care legislation. All four of Arkansas's Republican representatives have said they will vote for the stop gap measure, including freshman Congressman, and candidate for U.S. Senate, Tom Cotton.
"I don't want to shut down the government and neither does any Republican and it's only Barack Obama that is threatening a government shutdown and not advancing any solutions of his own," said Cotton in an interview witk KARK's Ashley Ketz Wednesday. "The House has brought forth legislaton that would fully fund the government, defund Obamacare and stop all the harmful effects its having on Arkansas families and businesses."
Even the most staunch advocates for defunding the health care legislation know the short term deal has no future in the Democratic-controlled Senate. Senate Majority Leader Harry Reid is likely to strip the "Obamacare" provision and send the bill back to the House. Arkansas's Democratic Senator Mark Pryor says any attempt to shutdown the government over partisan policy is quote irresponsible.
"Any attempt to shut down the government is irresponsible and will hurt our economy just at a time when it is beginning to turn the corner," stated Pryor through an email Wednesday. "I will continue to work in a constructive way to keep the government open and to get things done to keep our economy growing."
Republican Senator John Boozman announced yesterday the hire of Helen Walker Tolar, a 12-year veteran of Capitol Hill, as his new chief of staff. Tolar will start at the end of the month.
Current and long time Chief of Staff Matt Sagely is leaving the post for an opportunity in the private sector. Tolar is a native of Pensacola, FL.For more on Boozman's hire, log on to Talkbusiness.net.