Wall Street

Online Stock Market Trading By Freddie Mooche

The Fed's last rate change occurred last summer, when it hiked the funds rate for a 17th straight time.

Stock Investing Course The Federal Reserve raised the benchmark fed funds rate a quarter point Tuesday, marking the 7th consecutive raise in interest rates, in order to curb inflation.If you would like to receive late breaking business news covered by AXcess News then you need to subscribe. Membership is free.

-another indication that mortgage rates will not rise this year.?Economists also say the Federal Reserve will not raise federal funds rates beyond 3 per?cent by the end of 2005, due to the rise in oil prices, the war in Iraq and terrorist threats. However, the average price of homes in the U.S. rose by 9.36 per cent from the second quarter?of 2003 to the second quarter of 2004. Within the last four years, median house prices have gone up?/p>

Stock Market Game Print This Page

Today's FOMC minutes will conclude the September 18th monetary policy meeting, where the U.S central bank lowered both the Fed funds and discount rate by 0.5% each.

Stock Investing Game March 22, 2005 (AXcess News) New York - The Federal Reserve raised the benchmark fed funds rate a quarter point Tuesday, marking the 7th consecutive raise in interest rates, in order to curb inflation.The Fed raised the rate charged banks on over-night loans to 2.75 percent, signaling concern over the rising rate of inflation when it restated its intent to continue raising short-term interest rates at what it called a 'measured pace.'

Meanwhile, Interest Rate futures show traders expect a 0.25% point rate cuts at the Fed's next two monetary policy meetings on October 31 and December 11.

Journal Prime Rate Street Wall The Federal Reserve released a statement following the rate hike saying, Though longer-term inflation expectations remain well contained, pressures on inflation have picked up in recent months and pricing power is more evident."

rate futures show around a 90% chance that the Fed will lower its 4.75% overnight lending rate between banks by at least a 0.25% point on Wednesday.

Stock Market News Economists had been predicting that a slowing pace by the the Fed would widen rate hikes, but after Tuesday's warning by the Fed, those predictions went to the wayside with the market accepting that the Federal Reserve intended to continue raising short-term interest rates this year.

Stock Investing Basics Traders concerned over the trade deficit and rising inflation are worried that the Fed could raise Fed Fund rates even more than a quarter of a point if inflation continues to show signs of a rising economy.Following the Fed's news, the Dow Jones Industrial Index closed down 94.88 points, or 0.90%, at 10,470.51. The NASDAQ fell 18.17 points, or 0.91%, closing at 1,989.34. And, the S&P 500 was off 1.02%, closing at 1,171.71.The benchmark 10-year treasury bond closed up 0.08% at 4.61% yield.

Stock Investing Software AXcess News will be reporting on any new market trends related to this story. Members should watch their in-box for late breaking business news. If you're not a member, consider joining now.

[ Comment, Edit or Article Submission ]