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By Jason Stipp | 09-25-2009 10:11 AM

This Week's Top Five Takeaways

Morningstar markets editor Jeremy Glaser on Fed finger-pointing, M&A exuberance, deflation doubts, and housing pain.

Jason Stipp: I am Jason Stipp with Morningstar and this is the Friday Five. It is our look back at the week's most interesting, enlightening, and even outrageous data points and headlines. Joining me with the Five is Morningstar's markets editor, Jeremy Glaser. Thanks for being here Jeremy.

Jeremy Glaser: Oh, you are welcome.

Stipp: So what are the five this week?

Glaser: Well this week we had the fed funds. We had a cereal surprise. A potential fed fail. We saw Dell make a deal. And we had a little bit of housing being humbled.

Stipp: OK. So we had some fed news on Wednesday. Let's start there.

Glaser: This is probably the big story of the week is that the fed decided to hold rates at essentially zero. No big surprises there. The one thing that did jump out is that the fed, in their press release, certainly sees that the economy is improving. They still have some concerns about the consumer, but I think for the most part, the Federal Reserve thinks this recession is over.

Stipp: So it looks like they are going to be holding those rates steady, and being very accommodative for a while. It doesn't seem like inflation is on their radar. We have talked to some people who actually say deflation is the bigger threat in the short term. Jeffrey Gundlach from TCW said it is definitely on his radar screen for the intermediate term as being the issue that we need to address right now.

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