US stocks soar as Fed tips rate rise

The Daily Telegraph - Business - - Front Page - By Rhiannon Bury

STOCKS closed at record highs in the United States last night af­ter the Fed­eral Re­serve in­di­cated that a planned rate rise in De­cem­ber was still on the cards.

The in­dex closed at a record 22,872.89, hav­ing gained 42.21 points on the day, boosted by the re­lease of min­utes from the Fed’s monthly meet­ing in Septem­ber. These showed that de­spite some pol­i­cy­mak­ers ex­press­ing con­cern that there was not yet enough ev­i­dence of price gains to sup­port a third rise this year, it was likely to go ahead.

There had been a de­bate over whether forces hold­ing in­fla­tion down this year were per­sis­tent or tem­po­rary, the min­utes showed.

The min­utes of the meet­ing also re­vealed that the cen­tral bank “ex­pected growth of real GDP in the third quar­ter to be held down by the se­vere dis­rup­tions caused by the storms”.

But it added that the econ­omy would re­bound later in the year, thanks to re­build­ing ac­tiv­ity in the af­fected ar­eas, and that higher prices for gasoline and other items were likely to tem­porar­ily boost in­fla­tion, coun­ter­act­ing any neg­a­tive ef­fects.

Newspapers in English

Newspapers from UK

© PressReader. All rights reserved.