“U.S. stocks wavered, erasing earlier gains, as investors welcomed continued easy-money policies but remained cautious as central bank officials noted concerns about global market turmoil,” Dan Strumpf and Josie Cox report for The Wall Street Journal.
“The Federal Reserve left short-term interest rates unchanged after weeks of market-churning debate at the central bank about whether it was time to end an era of near-zero rates,” Strumpf and Cox report. “Many investors remained cautious, however, as central bank officials noted concerns about weakness in global economies and markets.”
“Fed officials have been signaling for months they plan to raise rates this year after cutting them to exceptionally low levels in December 2008 in response to the financial crisis,” Strumpf and Cox report. “A large majority of Fed officials still believe the central bank will raise rates before year-end, but the central bank in Thursday’s statement showed a bit less conviction on that point. In June, 15 of 17 officials said they expected to raise rates this year, according to official projections released with the Fed’s policy statement; on Thursday the number of people who expected to raise rates this year slipped to 13. Many investors now expect the Fed to hold off on raising rates at all until 2016.”
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MacDailyNews Note: As of publication, Apple (AAPL) shares are down $2.49 (-2.14%) to $113.92 off session highs of $116.49.