The U.S. Federal Reserve is staying the course on monetary policy, taking no action and leaving interest rates at historically low levels. This, despite a steady improvement in economic conditions in the U.S. and around the world.
Gasoline prices are on the rise, but it doesn’t seem to be slowing down American consumers. Retail sales rose in February at the fastest pace in five months fueled by higher demand for automobiles.
The steady recovery in the U.S. job market and a second bailout for Greece also helped to lift investor confidence, pushing stock prices higher on Wall Street for the fifth day in a row.
But even as fears of a Greek default fade into the background, German market analyst Robert Halver says investors are already looking ahead to the next potential worry for the Eurozone.
“We’ve got a new problem child in Euro-land: Spain. Spain should do its homework, especially economic reforms,” he said. “Spain has to deregulate its absolutely inflexible job market.”
Spain missed its deficit target last year and is unlikely to reach it again this year. And with an economy four times bigger than Greece, experts say a potential bailout is not in the cards.