US economy

Stocks Inch Higher as Fed Leaves Rates Unchanged


Stocks edged higher Wednesday, after the Federal Reserve left interest rates unchanged, while signaling a readiness to cut them in the coming months.

Investors in recent weeks had become increasingly certain that the central bank would reduce rates later this year in order to counter stronger economic headwinds related to the trade war. That view has been fueling a stock market rally that has left the S&P 500 up more than 6 percent this month.

On Wednesday, the stock benchmark rose slightly shortly after the release of a statement from the Fed’s rate-setting committee, the Federal Open Market Committee, at 2 p.m. Defensive sectors such as health care and utility stocks, businesses that hold up well during periods of weak economic growth, delivered the day’s best gains.

The broad index of blue-chip American companies is approaching a new high, and has been climbing since early June, when the Federal Reserve chairman, Jerome H. Powell, first indicated that the central bank would act to sustain the economic expansion if President Trump’s trade war weakened the economy.

Its previous peak, on April 30, was driven by optimism about prospects that Washington and Beijing would strike a deal and avert a growing confrontation between the world’s two largest economies. Those hopes proved misplaced.



READ SOURCE

Leave a Reply

This website uses cookies. By continuing to use this site, you accept our use of cookies.