The central bank said risks to its economic outlook are “roughly balanced”.
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Aside from the potential for Monday’s US presidential debate having a big impact on the election, “there’s really nothing on the horizon until earnings season, and the Fed has kind of cleared the way for accommodative policy and low interest rate environment which bodes well for stocks”, said Alan Lancz, president of investment advisory firm Alan B. Lancz & Associates in Toledo, Ohio.
Rosengren has previously warned about the rapid rise of commercial real estate prices in the United States, which he argues could deepen a downturn if the US economy is hit by a negative shock.
EDF inched 0.4% higher, underperforming the market after the French nuclear power utility said it was cutting its 2016 earnings expectations due to lower output. For the year, the benchmark S&P 500 is up 5.8 percent.
The dollar index dropped 0.4 per cent on Thursday, and was on track to mark the second straight day of losses after the Fed’s decision.
Energy shares were also in demand after oil prices also rose on a weaker dollar, extending gains from the previous session when a surprise third consecutive weekly US crude inventory draw tightened supply.
The Standard & Poor’s 500 index rose 11 points, or 0.5 per cent, to 2,174. The stocks were among the biggest positive influences on the S&P.
Asian shares held near 14-month highs on Friday as investors restored bets the Federal Reserve is settling into a phase of very gradual interest rate rises, while Japanese bond yields fell after the Bank of Japan’s radical new policy scheme. I have no interest in buying rallies, as we continue to see bearish pressure again and again. The Nasdaq composite climbed 33 points, or 0.6 per cent, to 5,325. Excluding food and energy, the latest reading on its preferred measure of consumer prices was just 1.6% above its year-ago level.
In a brief statement released at the end of the two-day meeting, committee members said the case for a rate increase has strengthened but that they made a decision to wait “for further evidence of continued progress”.
“It appears hard for the dollar-yen rate to show a clear direction as market participants remain divided in their assessments of the new monetary policy framework announced by the Bank of Japan (on Wednesday)”, an official of a major Japanese bank said.
“It’s incredibly tough to believe they would seriously consider raising rates a week before the USA election”. Murphy Oil jumped 4 per cent.
The US dollar index, which measures the greenback against a basket of currencies, slipped to its lowest since September 12 before paring losses.
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Oil has rallied several times this year on hints of output curbs by OPEC and other oil exporters, only to fall later as production rose.
