The Closing Look

Stocks rallied on Wednesday after the Bank of Japan and The U.S. Federal Reserve both erred on the side of more easy money. Before Wednesday’s open, the BOJ surprised the market and said it will target the yield curve and announced a new catch phrase: YCC (Yield Curve Control). The BOJ also left the door open for more easy money measure to help stimulate inflation. The U.S. Federal Reserve left rates unchanged and hinted that they may raise rates later this year. Elsewhere, the Organization for Economic Co-Operation and Development (OECD), said the global economy is stuck in a “low-growth trap. ” The OECD believes global GDP growth will remain flat at about 3% in 2016, with only “modest improvement” expected in 2017.

Gary’s Thoughts: No rate hike and more easy money! We had no idea!