US Interest Rates Frozen for 2 Years
US interest rates have effectively been frozen for 2 years by the US Federal Reserve.
US Federal Reserve chairman, Ben Bernanke, said the exceptionally low interest rates of 0.25% would stay in place until 2013.
The statement did enough to reassure investors after days of huge losses on stock markets around the world.
The Dow bounced back almost 4% and other stock markets around the world made similar gains as investors sought bargains in the turmoil.
The credit score scale slide by the US triggered a huge loss in confidence in the markets at the start of the week with shares losing millions off their market values.
Continuing problems in the Eurozone and depressed growth forecasts in many developed economies added to the general sense of malaise.
Apple briefly became the world’s most valuable company as the oil giants temporarily lost some of the their value and Apple became a safe haven for investors.
However, analysts believe that that Apple’s brief reign at the top is an indication of the future. The company that was on it’s knees just 15 years ago until the return of Steve Jobs, is now widely expected to become the first trillion $ company.
In the last month alone Apple’s value has gone up by $50 billion and is now valued at $346 billion. This compares to Exxon at $352 billion, even though Exxon earns 4 times the amount of revenue that Apple does, the future is seen in technology.