FED> forcing American Car buying Worldwide.
How are they doing it? Very easily thru dropping the US dollar value. Why would they do it? Ever heard of GM? Government Motors, the US government now is biased toward lowering the US dollar because it benefits them greatly. Ford also see's this reality and recently announced to hire another 1,000 workers in India to a total of 4,000 to try and make a major push into India's 1.2 Billion population market. or 1/6 th of the total world population.
LOWER US dollar means the US Auto would be cheaper abroad and more competitive.
The Fed didn't announce specific actions to strengthen the economy, but investors interpreted its statement as a signal that the central bank could step up its bond-purchasing program down the line. The Fed said the economy is still recovering but at a sluggish pace.
Investors had little incentive to move more money into stocks, so they turned their focus to bonds and gold. Treasurys rose again, pushing their yields lower, and gold climbed to another record.
If the Fed starts purchasing bonds, it would have the dual effect of raising demand for Treasurys and hurting the value of the dollar. That's why bond prices rallied Wednesday and traders swapped out dollars for gold and other currencies.
The Dow fell 33.86, or 0.3 percent, to 10,727.24 in afternoon trading.
The Standard & Poor's 500 index fell 5.92, or 0.5 percent, to 1,133.86, while the Nasdaq composite index fell 21.32, or 0.9 percent, to 2,328.03.
The yield on the 10-year Treasury note, which moves opposite its price, fell to 2.52 percent from 2.58 percent late Tuesday. Its yield is often used to set interest rates on mortgages and other loans.
Gold climbed to a record $1,298.00 an ounce before falling back to $1,291.30 an ounce.
The euro hit a five-month high against the dollar.