Stocks moved higher at the close after the Fed left rates unchanged and indicated it probably won't raise rates next year.
The Fed kept interest rates unchanged on Wednesday, following three decreases in a row. The central bank also indicated it does not expect any policy changes"The Fed is saying they will leave rates unchanged all year next year, and that means the 10-year Treasury yield will stick so close to the 1.75% Fed funds rate target that you could put a strobe light on it and it would still look like it wasn't moving," said Chris Rupkey, chief financial economist at MUFG, in a note.
"In order to move rates up, I would want to see inflation that's persistent and that's significant," he said. "A significant move up in inflation that's also persistent before raising rates to address inflation concerns. That's my view." Back in October, the Fed announced it would extend overnight funding operations through at least January and buy Treasury bills through next year's second quarter. Those moves were announced after a disturbance in the short-term lending market back in September.
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