Fed holds rates steady, sees economy on track

The Federal Reserve held interest rates steady on Thursday and said ongoing strong job gains and household spending had kept the economy on track.

World stocks basked in an eighth straight session of gains in their longest winning streak of the year on Thursday, as reassuring trade data from China kept the previous day’s post-midterms risk rally rolling.

The dollar and bond yields also rose, with the dollar pulling away from 2-1/2 week lows hit after President Donald Trump’s loss of the House of Representatives in the midterms reduced the chance of another blizzard of tax cuts.

  • Publisher: NBC News
  • Twitter: @NBCNews
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Equities slip as Fed holds rates steady; dollar up

NEW YORK (Reuters) – World equity markets declined on Thursday, snapping a seven-session winning streak, with U.S. stocks on the defensive and the dollar strengthening after the Federal Reserve kept interest rates unchanged.

The U.S. central bank held rates steady and said ongoing strong job gains and household spending had kept the economy on track. Its statement showed little change in the Fed’s outlook for the economy since the Fed’s previous meeting in September aside from noting that ‘business investment had moderated from its rapid pace earlier in the year.’

U.S. shares extended losses after the Fed statement, on the heels of Wednesday’s post-election rally of more than 2 percent. Those gains came as investors celebrated political gridlock in the United States as Democrats took control of the House of Representatives after the midterm congressional vote, while Republicans maintained control of the Senate.

  • Publisher: U.S.
  • Date: 2018-11-08T21:19:42+0000
  • Author: Chuck Mikolajczak
  • Twitter: @Reuters
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Fed is set to keep rates on hold before a hike later in the year

Still, investors will be parsing the statement the Fed will issue after its meeting for any sign that it might be rethinking its probable pace of credit tightening in the coming months. So far this year, the central bank has raised rates three times.

At their most recent meeting in late September, Fed officials collectively projected that they would end up raising their key short-term rate four times this year and three times in 2019. The Fed’s benchmark rate affects many consumer and business loans, and when it raises it, borrowing can become more expensive for many.

In recent weeks, financial markets have been gripped by worry and volatility, and some analysts think that in its statement Thursday the Fed may take note of that anxiety as a potential risk to economic growth.

  • Publisher: CNBC
  • Date: 2018-11-08T06:27:10-0500
  • Author: Author link
  • Twitter: @CNBC
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