United States stocks end volatile day lower as Fed lifts rates

24 March, 2018, 12:33 | Author: Elaine Woods
  • Federal Reserve chairman Jerome Powell

On Wednesday, the U.S. central bank again raised its benchmark overnight lending rate by another 25 basis points- the fifth rate hike since it ended its ultra-low interest rate policy in December 2016, and setting current rates to a range of 1.50 percent to 1.75 percent. While this might seem daunting for the average consumer with debt or mortgages, the increase is actually a sign of continued health and strength in the economy.

Stocks initially climbed after the Fed confirmed a long-expected quarter-point rate hike.

But the Fed's new forecast does envision somewhat stronger economic growth compared with its previous estimate: It raises the estimate to 2.7 percent growth this year, up from 2.5 percent in the December projection, and 2.4 percent in 2019, up from 2.1 percent.

The Federal Reserve said it had made a decision to raise the rate by 0.25% to a target range of 1.5% to 1.75%.

Ten years after the financial crisis, even as the Fed is carefully moving towards normalizing policy-though it may have to move faster if inflation surprises on the upside-the risk for the global economy at the moment is populist measures by the U.S. government.

"If I venture a prediction, there might be a four rate hikes in 2018", Stern NYU Professor of Economics Nicholas Economides said Wednesday during an interview on FOX Business' "Countdown to the Closing Bell".

In the Fed's projections, this would be accompanied by inflation that rises to - and just temporarily above - the 2 percent target the central bank has set.

Louisiana lawmaker proposes 15-week abortion ban similar to Mississippi's
The clinic argues in the lawsuit that it performed 78 abortions in 2017 that took place 15 weeks or longer into the pregnancy. Bryant has frequently said he wants MS to be the "safest place in America for an unborn child".

Self-Driving Uber Strikes and Kills Pedestrian
This time , though, it's the first accident that's resulted in a fatality, so Uber is surely conducting its own internal tests. Earlier this month, Arizona governor Doug Ducey updated an executive order to allow for unmanned self-driving vehicle testing.

Boris Johnson Reveals What He Said To Jeremy Corbyn In Parliament
About 20 Labour backbenchers signed a motion stating the Commons "unequivocally accepts the Russian state's culpability". He said his leader's approach was "not about being nice to Russia" but about taking "a statesman-like approach".

But markets later pulled back during new Fed Chair Jerome Powell's news conference in which he was asked repeatedly about risks to the economic outlook, including from a possible trade war between the U.S. and China. The Fed was tempted by the strengthening economy, optimism on reaching the inflation target this year and impressive labor market gains. Though economic growth has been revised higher, there was no change in the inflation projection.

Jitipol Puksamatanan, a strategist of Krungthai Bank, said that the baht's rise to 31.16 to the USA dollar, after the market opening, contrasted with its mark of 31.22 at the close of the previous day's trading.

The Fed raised its key rate by 25 basis on Wednesday and flagged at least two more increases this year, but stopped short of pointing to three increases that some economists predicted. "But, this now being the sixth interest rate hike, the cumulative effect since December 2015 is that a $30,000 home equity line now carries a minimum payment that is $37 a month higher", McBride said.

According to Jim Wyckoff of Kitco, "u$3 pside price action in gold and silver markets, post-Federal Open Market Committee, is an example of the "sell-the-rumor, buy-the-fact" scenario that occurs when traders factor into prices expected bearish events before they actually occur". The yield on the 10-year Treasury note declined to 2.88 percent from 2.90 percent Tuesday.

The median estimate for economic growth this year rose to 2.7% from 2.5% in December, signaling confidence in U.S. consumers despite recent weak readings on retail sales that have pushed down tracking estimates of first-quarter activity.

And indeed, the Fed now sees the median estimate for economic growth this year rising higher to 2.7 percent. Some analysts also worry about the economic consequences of President Donald Trump's proposed tariffs on imports, which risk triggering a trade war with other nations. Higher rates could affect confidence and lead to higher volatility in financial markets.


  • 'Idol' Contestant Apologizes to Katy Perry for Loving Taylor Swift

    'Idol' Contestant Apologizes to Katy Perry for Loving Taylor Swift

    She denied it and added: "You do something, there's going to be a reaction, and trust me daddy, there's going to be a reaction". Perry has publicly acknowledge their feud before, claiming their friendship ended due to a dispute over tour dancers.

    "Black Panther" remains Number 1 for 5 Straight Weeks

    As reported by Deadline , Black Panther is number one for the fifth week in a row earning an impressive $27 million this weekend. Tomb Raider is basically a reboot of early 2000s film franchise, which was accentuated by the well-known Angelina Jolie .
    No. 13 Marshall ousts Wichita St. in a shocker

    No. 13 Marshall ousts Wichita St. in a shocker

    Jevon Carter scored 21 points, had eight assists and six steals as No. 5 seed West Virginia overwhelmed 12th-seeded Murray State. First up: a battle in San Diego against C-USA champion Marshall. "Jon is a special player, and he's proven that year-round".
  • Apple is trying to make its own displays, report says

    Apple is trying to make its own displays, report says

    A few months ago, a report said that Apple is working on a secret iPhone project with LG so that Samsung can't have access to it. An Apple sales associate speaks with a customer waiting to purchase a new iPhone X in NY , U.S., November 3, 2017.
    Actor Jim Carrey Blasted Over Painting that Resembles Huckabee Sanders

    Actor Jim Carrey Blasted Over Painting that Resembles Huckabee Sanders

    Jim Carrey has done a fair amount in his career. "Monstrous!" Carrey didn't name names - but Twitter got the idea all the same. The image comes shortly after the Canada-born Carrey , 56, sparked backlash for sharing a similar portrait of Sanders .
    Pro-Turkish forces pillage Afrin after taking Syrian city

    Pro-Turkish forces pillage Afrin after taking Syrian city

    Erdoğan said a total of 3,603 militants have been "neutralized" since the beginning of the operation. Ankara said the demand did not apply to Afrin, but its operation has faced criticism in the West.
  • Alzheimer's deaths in Oklahoma are rapidly rising

    Alzheimer's deaths in Oklahoma are rapidly rising

    Alzheimer's places a huge burden on the health care system, with annual costs exceeding a quarter of a trillion dollars. The diagnosis cases are such strong that in every 65 seconds, some in the US gets diagnosed with Alzheimer's dementia.
    Daniel Bryan has been cleared by WWE to return to the ring

    Daniel Bryan has been cleared by WWE to return to the ring

    It will arguably be the most anticipated match of the event and perhaps even the most anticipated match of the last two years. There's so much lost time to make up for, so many fresh opponents Bryan can work and old rivalries to be rekindled.
    Putin Expresses Gratitude to Voters After Winning Controversial Presidential Election

    Putin Expresses Gratitude to Voters After Winning Controversial Presidential Election

    The statement says they also expressed satisfaction with the apparent easing of tensions over North Korea's weapons program. Trump said they would meet in the "not too distant future" to discuss limiting a growing arms race, Ukraine and Syria.
  • Google makes it easier to buy what you search for

    Google makes it easier to buy what you search for

    Google says that its data reveals that mobile searchers for "where to buy" surged by 85 percent over the past two years. So, the sites that lost the ranking were replaced by other sites, which gained because of the update in the algorithm.
    Dairy Queen to give away free ice cream cones

    Dairy Queen to give away free ice cream cones

    All customers can receive a free small vanilla soft-serve cone, which of course comes with the signature DQ curl on top. Participating locations also will collect donations for local Children's Miracle Network Hospitals .
    Dozens killed in Ghouta airstrikes as thousands flee

    Dozens killed in Ghouta airstrikes as thousands flee

    More than 40,000 civilians have poured out of the enclave since Thursday morning, fleeing bombardment and advancing troops. He said the United Nations can not confirm the reports "but we can not and should not ignore them".


China 'ready to defend its national interests' from US
The Bank of England warned Thursday that increased protectionism could have a "significant negative impact" on global growth. The WTO has repeatedly drawn the ire of the administration but it could provide a resolution that avoids a trade war.

Koreas agree to hold pre-summit preparation talks
That summit meeting, which both sides have agreed to hold in late April, is expected to be followed within weeks by a meeting between Mr.

Alliance of American Football To Launch In 2019
Ex-Steelers wide receiver Hines Ward will be an AAF advisor, as will former New York Giants defensive end Justin Tuck . Each franchise will be league-owned, and the assignment of each team's 50 players will start with a regional draft.

Israel Lifts Censorship, Confirms 2007 Attack on Syrian Nuclear Reactor
The latest such attacks took place on February 20, when Israeli warplanes bombed a Syrian army facility in central Syria. At the time Syria dismissed the accusations as part of a campaign to discredit the Damascus government.

I Told The Truth That 39 Indians Were Killed: Mosul Survivor
Relatives said they received panicked phone calls from some of the workers five days after Mosul was captured, asking for help. Masih said they were killed in front of his eyes and wondered why the government was not accepting what he had said earlier.

Sehrai replaces Geelani as new Tehreek-e-Hurriyat chief
Relations between Geelani and the Jamaat soured again in 2010 after Geelani made some unpleasant remarks in his biography. Geelani has been viewed as a key separatist leader in the Valley and has been vocal on advocating Kashmiri separatism.

European Union deal falls 'far short' say fishermen
The terms of an agreement on the transitional period is expected to be signed off by European Union leaders at a summit this week. The first round ended with Britain reluctantly agreeing to follow the EU's timeline for the rest of the negotiations.

Russia Denounces Provocation to Sabotage FIFA World Cup
Simonyan also added that the refusal to participate in the World Cup could threaten the relationship between countries.

Osaka upsets fifth seed Pliskova to earn semi-final…
She also broke Kasatkina to go up 4-1 with another precision forehand victor down the line and never looked back. Williams, the tournament's No 8 seed, has split her only two career meetings with the 20th-seeded Kastakina.

Trump ends the charade, directly engages in Stormy Daniels lawsuit
The White House press secretary, Sarah Sanders, has rejected the notion that Trump approved the payment to Clifford. Clifford quiet during the presidential campaign, which culminated in the deal for her silence in October 2016.