With the vote split seven to three, some have suggested the Fed will introduce a further rate move before the end of the year.
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And with the Fed’s next meeting just days before the Nov 8 election, we can safely assume that United States interest rates would remain as they are until its final meeting on Dec 13-14.
That leaves the December meeting as the only meeting left in the calender year.
The U.S. Federal Reserve is widely expected to leave interest rates unchanged however investors are eager to hear from Fed Chair Janet Yellen, about the future of economy.
Yellen said Fed examiners will pay close attention to banks’ control procedures to prevent such lapses.
The Bloomberg Commodity Index advanced for a sixth day, rising 0.8 per cent, as the Fed rate decision weakened the dollar.
The Dow Jones industrial average rose 98.76 points, or 0.54 per cent, to 18,392.46, the S&P 500 gained 14.06 points, or 0.65 per cent, to 2,177.18 and the Nasdaq Composite added 44.34 points, or 0.84 per cent, to 5,339.52.
That knocked the dollar nearly across the board as investors reduced their expectations for US interest rates.
OTHER ENERGY PRICES: Wholesale gasoline rose 3 cents, or 2.5 percent, to $1.40 a gallon. “We’re generally pleased with how the USA economy is doing. the economy has a little more room to run than might have been previously thought”. The misconduct is believed to have gone on for many years, and it’s raised questions about the role of regulators – including the Fed – in monitoring banks. While at the beginning of 2011, trading in euro-dollar futures was still foreseeing a return to typical interest rates over the next few years, that view has given way to expectations that rates will remain low for a decade to come. They may also reflect doubts, however, about Yellen’s message that the case for a rate increase is growing stronger.
Fed officials concluded that economic growth is improving after an anemic first half of the year, job gains are approaching an apex and inflation remains low.
Higher interest rates make currencies more attractive to investors.
Well, the yell mode was back in the world’s financial markets this morning after the Fed’s decision.
So, the US Fed didn’t rock the boat as expected, though Chair Janet Yellen vehemently said a rate hike is coming by December.
At the beginning of this year, its leaders projected raising rates four times – but that hasn’t happened either.
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The Fed chairwoman has faced a barrage of criticism from Trump over the last several days. The Energy Information Administration said oil inventories dropped by 6.2 million barrels and gasoline inventories decreased by 2.5 million barrels last week. The FTSE 100 Index of the U.K.is up 28.92 points or 0.42 percent at 6859.71, The CAC 40 Index of France is up 45.52 points or 1.04 percent at 4434.12 and the DAX of Germany is advancing 95.54 or 0.92 percent at 10.489.40. The Japanese central bank’s policy tweaks give it scope to keep easing to revive the economy and inflation, while limiting the negative impact on bank earnings. For Barclays and BNP, those single data points belie broader labor-market strength, as shown by the largest three-month increase in non-farm payrolls since January.
