In the wake of Standard and Poor's decision to downgrade the U.S. credit rating, and an economy still struggling to keep its head above water, the Federal Reserve decided yesterday to keep the nation's interest rate close to zero through 2013. The rate has been static for the past two years. The response on Wall Street seemed mixed. At first stocks took a bit of a dive, but they recovered. The Dow closed up 429 points yesterday after a late rally.
Louise Story, Wall Street and finance reporter for The New York Times, tells us what impact this decision will have and what the Obama administration needs to do to right get the economy moving again.