The Fed also kept its benchmark interest rate steady at its current range of one to one-and-a-quarter percent, while hinting at one more hike, before the end of the year.
Advertisement
The credit report company disclosed earlier this month that it had discovered a giant cybersecurity breach on July 29, compromising the personal information of as many as 143 million Americans – almost half the country.
The Fed is trying to not to disrupt this growth by outlining its plans clearly to avoid the uncertainty that tends to unnerve investors and rattle markets. The rise in bond yields augurs for higher real interest rates they can charge customers for loans, which in turn should pad these banks’ bottom lines.
CURRENCIES: In the run-up to the decision, the dollar was largely steady, with the euro up 0.2 percent to $1.1974. Kellogg was off 82 cents, or 1.2 percent, to $65.05, while Campbell Soup lost 74 cents, or 1.6 percent, to $46.58. The Fed’s main gauge of inflation, the personal consumption expenditures price index, rose only 1.4 percent in May from the previous year.
The S&P 500 and the Dow ended slightly higher on Wednesday, adding to their string of closing records, after the Federal Reserve signalled it expects another interest rate hike by year-end and disclosed timing for reducing its balance sheet. The median fed funds rate forecast for 2018 is still at the 2.1% from the most recent forecast. Eastern Time. The Dow Jones industrial average edged up 14 points, or 0.1 percent, to 22,385.
Tata Steel advanced 1.7 percent after the miner entered into a joint venture with Germany’s Thyssenkrupp to merge their European steel businesses.
Oil service stocks have moved significantly higher, however, with the Philadelphia Oil Service Index jumping by 1.9%. Chesapeake Energy added 15 cents, or 3.7 percent, to $4.19.
ENERGY: Benchmark U.S. crude rose 36 cents to $50.27 a barrel while Brent crude, used to price global oils, advanced 17 cents to $55.67. The Fed, though, has yet to achieve its other objective of stabilizing prices at a 2 percent annual rate.
Wholesale gasoline was little changed at $1.66 a gallon.
Advertisement
In overseas trading, stock markets across the Asia-Pacific region turned in a lackluster performance during trading on Wednesday. France’s CAC gained 0.1 percent to 5,244.17. South Korea’s Kospi lost almost 0.1 percent to 2,416.05. Japan’s Nikkei 225 Index inched up by 0.1%, while Australia’s S&P/ASX 200 Index dipped by 0.1%.
