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By Jason Stipp and Jeremy Glaser | 09-18-2015 09:00 AM

Fed Decision: When Good News Is Bad News

Rather than cheering the no-hike news, markets may be worrying about global growth along with the Fed. Plus, how a beer deal could make a mega moat, an opportunity in Oracle, and more.

Jason Stipp: I'm Jason Stipp for Morningstar. Welcome to The Friday Five, Morningstar's take on five stories in the market this week. Joining me with The Friday Five is Morningstar markets editor Jeremy Glaser.

Jeremy, thanks for being here.

Jeremy Glaser: You're welcome, Jason.

Stipp: Up first this week, of course, is the big Fed decision. They decided to keep rates the same. Overseas issues definitely were weighing on the Fed.

Glaser: They certainly were. Going into this meeting, one of the big question marks was: How would the potential impact of slowing global growth weigh on the Fed? It turns out that was the decisive factor. They said the U.S. economy is basically ready for a rate increase, but given that these overseas concerns could really weigh on the U.S. economy, they decided to hold pat for now.

The really interesting thing is looking at their projections for what's going to happen going forward. Most of the governors still think they are going to have a rate increase some time in 2015 but with slightly less confidence than they did the last time they gave us projections. If we look at the path of where they see rates going for the next couple of years, they still expect a very, very gradual increase in rates over time when they actually do start to have lift-off.

It still seems possible there's going to be a rate increase in December this year. That is very much on the table, but they are going to be watching that data carefully.

It's been interesting to watch the market reaction to this. U.S. stocks ended lower on Thursday. They continued to be lower on Friday. European stocks sold off. Asian shares were mixed. I think this shows that the market--instead of being jubilant that this easy money was here to stay at least for a couple of more months--was actually concerned that the Fed was concerned about growth. I think that's weighing on markets right now. It'll be interesting to see how this plays out in the weeks and months to come as we continue in this uncertain guessing-game period until the Fed acts.

Stipp: Last week, you talked about some beer deals, but this week we got the mother of all beer deals. Two beer giants, Budweiser and Miller, are in talks potentially to merge.

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