Investors went shopping for stocks after the Fed decided to hold interest rates steady. But as Fred Katayama reports, the central bank said the case for a rate hike has strengthened.
Wall Street climbs on Fed inaction
Markets cheered the U.S. Federal Reserve’s decision to keep rates unchanged. But the central bank also indicated that the case for a rate hike has strengthened. The Fed saying the labor market continues to improve and that growth has picked up from a modest pace. But three policy committee members dissented.
George Rusnak of Wells Fargo Investment Institute:
SOUNDBITE: GEORGE E. RUSNAK, CO-HEAD OF GLOBAL FIXED INCOME STRATEGY. WELLS FARGO INVESTMENT INSTITUTE
“The prior time that they met there was only one dissenter. And this time there is actually three which is the most since 2014. So you can feel within the Fed and within the FOMC just a lot of conflict developing about future interest rate policy.
Earlier in the day global markets were surprised by the Bank of Japan’s decision to adopt a “yield curve control.” The central bank will aim to keep 10-year bond yields at current levels around zero percent.
General Motors confirming its 2016 profit forecast. The automaker said it expects to beat its cost-savings target of $5.5 billion by 2018.
In Europe, banks and miners helped drive stocks higher.