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Stocks Rebound Last Week
Not all the news was encouraging last week, but it was still sufficient to boost stock prices after weeks of losses. For the week, stocks gained an average of 1½%, but before cheering your newfound wealth, keep in mind that the gain erased only about half of the previous week’s losses.
The $64 question as the summer winds down is when the Federal Reserve Board will start raising short-term interest rates. While the economy improved in the second quarter, the dilemma facing the Fed is whether the trend is strong enough to warrant applying the brakes.