The tensions over the conflict in Syria, which many have worried could throw the economy out of balance and lead to military conflict, have been easing. Brent oil has taken a major upturn after the events in Syria have cooled off, seeing major gains for three days in a row. Due to these changes in the economic relations with Syria, the Fed is continuing their stimulus, purchasing $85 billion in bonds every month. Investors have expected the Federal Reserve to start tapering, or reducing the amount of stimulus somewhat, so it was quite a surprise when they announced there would be no changes and they would maintain the current investment plan. There are concerns over deflation, unemployment, and a stagnating economy, which has the Federal Open Market Committee on edge, claiming that the Fed easing up on stimulus would only cause the economic recovery to slow down further. This pressure has likely been a driving force in the Fed choosing to maintain the stimulus, which has led U.S. stock indices to hit record highs. One such reason is that the US Dollar has weakened, meaning that investors holding non-US currency are at an advantage when it comes to purchasing stocks.

For more details on the article Click Here