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The psychological effect of the Fed's action is important for the economy as well: If the Fed weren't buttressing the stock market and the Dow were thousands of points lower, consumers would feel less wealthy and cut spending. But that didn't have everyone convinced that the Fed's moves will make much difference in the end. Jeff Sica, president and chief investment officer of SICA Wealth Management in Morristown, N.J., was underwhelmed by the Fed's commitment to keep interest rates low. Short-term interest rates have been near zero for years, he noted. "How many times can you refinance your house?" Sica said. Dwight Johnston, chief economist of the California and Nevada Credit Union Leagues, expected the stock market gains to be short-lived
-- just like they were after other central bank moves, he said. "The definition of insanity is doing the same thing over and over again and expecting different results," Johnston said. "I think this may qualify." Data out Friday also underscored the tenuous state of the economy. U.S. industrial production fell in August by the largest amount in more than three years, the Fed reported. Also, high gas prices drove up consumer prices in August by the most in three years, the Labor Department said. The national average for a gallon of gas is around $3.87, a hardship for many families.
Among other stocks making notable moves: The Children's Place clothing store rose $1.85, or 3 percent, to $60.67 after a Citi analyst opened coverage of the company with a "buy" rating. The Cracker Barrel restaurant chain slipped $2.04, or 3 percent, to $64.13 after a KeyBanc analyst cut his rating to "hold" from "buy," citing high food costs. Staples was up 25 cents, or 2 percent, to $12.21 after Fortune magazine reported that private-equity firms are considering buying the office-supply company.
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