US markets rose Wednesday after the Federal Reserve put forward a purely message that suggested that an interest rate hike will come later than many have thought.
Thus step Dow Jones 1.27 percent to 18,076.19, while the S & amp; P 500 gained 1.22 percent to 2099.50.
Nasdaq got a rally of 0.92 percent to 4982.83.
FED modest
Wednesday night, it was expected that the Chairman Janet Yellen of the US Federal Reserve came to remove the wording that the Federal Reserve will be “patiently” to raise interest rates, for as such to prepare the market for an upcoming rate increase a few meetings later.
It turned out to vote.
The central bank wrote instead that it will look at developments in the labor market, as well as progress towards the goal of two percent inflation compared to when it wants to change the view that a key interest rate between 0 and 0.25 percent is correct.
According tonight pure message from the Fed is unlikely that raising happening already in April – something previously clean messages have not mentioned.
FED considers it likely that toprosentsmålet inflation can be reached within a medium term time horizon, but wrote in Wednesday’s clean message that the amended guidance for rentesettelsen not mean clean Committee has set no time for a rate increase.
Central Bank wrote that it could keep interest rates at a low level “a time” yet.
The amended wording indicates, even if it is subtle, that time with 0 interest nearing its end in the United States.
The reason for the positive reaction from the markets today is probably not in the Fed removes “patient”, but that the central bank indicated a lowered interest rate path.
Among Fed members indicated median rate at around zero before it rises to 0.625 percent in late 2015. It is in lieu of 1.125 percent, which was indicated at the monetary policy meeting in December.
– It is this market is most excited about says Ashwin Bulchandani in MatlinPatterson CNBC.
– Generally speaking, there were no big surprises, but the market rose sharply on the Fed seems more flexible. They do not need to be impatient, says Myles clouster in Nasdaq Advisory Services to the TV channel.
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