US equities inconsistent after Fed protocols reveal central bank wants to keep monetary policy stimulative until inflation stays on target


Wall Street stock prices closed inconsistently on Wednesday, but the Dow Jones index rose to its new record for the third time in a row.

The Federal Reserve released minutes of its January meeting. They showed that central bankers were still cautious about the US economy recovering at such a pace that it could afford to tighten monetary policy.

According to the minutes, central bankers reiterated their earlier statements on how they want to see inflation remain at the central bank’s target readings before considering ending securities purchase programs or raising the policy rate.

Promising macroeconomic figures were obtained from the United States today. Retail sales rose 5.3 percent in January from December, when Bloomberg’s median economists ’forecast expected growth of 1.1 percent. In December, sales decreased by 1.0 per cent compared to November.

The producer price index, which measures inflation, rose by 1.3 per cent in January compared with December, after rising by 0.3 per cent in December. Based on economists’ forecasts, growth of 0.4 percent was expected.

“The retail figures were awesome,” the treasurer Boston-based Andersen Capital Management founder Peter Andersen says Marketwatch.

“However, it is difficult to draw conclusions from one month,” he continues.

Oil companies were on the rise due to higher raw material prices. Chevron rose three percent.

Telecom operator Verizon tilted 5.2 percent after Warren Buffettin investment company Berkshire Hathawayn reportedly bought shares of Verizon and Chevron extensively in the fourth quarter of last year.

The Dow Jones index rose 0.3 percent, the broad S&P 500 index fell without a clear trend (-0.03%) and the Nasdaq index fell 0.6 percent.

The 10-year rate on U.S. government debt was quoted at 1.275 percent after the stock market closed. One euro received $ 1.2042.


Source: Arvopaperi by www.arvopaperi.fi.

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