Minutes Reveal Fed Pleased With Growth
The policy-making arm of the Fed is pleased with the economic progress in the globe's largest economy, which prompted stock-index futures in the US to hover in value early during today's session.
Friday, May 23, 2014 - 00:00
Discussion among members of the Federal Open Market Committee included discussion about the growing strength of the nation's economy, minutes from the April 29 and 30 meeting state, according to Reuters. Thus the Fed likely has on its radar to move forward with additional easing steps as it continues toward its objective of closing the economy-spurring program by the end of this year. Just after 10 a.m. in New York, the Nasdaq climbed 0.25%, a rise of 10.51 points to 4,142.04; the S&P 500 increased 0.12%, a lift of 2.31 points to 1,890.34; and the Dow rose 0.02%, a climb of 3.14 points to 16,536.2.
Policy makers also noted how they may boost short-term borrowing costs when they next convene for meetings. However, questions arose as to whether that bodes positively, negatively or somewhere in between. Fed Chair Janet Yellen said earlier this year that the body is open to a rate hike, but that would not manifest until six months after the closure of the stimulus program. It might be too early to assess whether the Fed will cut stimulus when it next convenes. Some members of FOMC were not as keen on the progress. Bloomberg reports three stages of quantitative easing in the US since 2009 have helped the S&P 500 shoot up as much as 180% since the index scraped its lowest rate in 2009.
ECB poised to continue spurring growth
MarketWatch reports the European Central Bank might be spurred to act as a result of the reduced pace of growth in the euro zone this month. The composite Purchasing Managers Index conducted by Markit indicated manufacturing and services sector activity dropped to 53.9 in May after having checked in at 54 last month. The ECB is slated to meet early next month, with growth and inflation likely to be key topics.
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