The Dow Jones fell more than 80 points on June 5th after a widespread realization that there is "almost no chance" that the Fed will cut interest rates by the end of the year.
The Fed chairman, Ben Bernanke, said "that the Fed expected the economy to pull out of its current funk and weather the slowdown in the housing market."
While investors have recently been expecting a rate cut by the end of the year, leading economists are noting that the slowly strengthening economy gives the Fed little reason to buffer against "a worse-than-expected slowdown" for now.
To read Jeremy Peters' article in its entirety, go to Fed Dims Hopes For A Rate Cut
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