U.S. Fed minutes point to more rate hikes ahead
The U.S. Fed Minutes released Wednesday indicated that officials were ready to proceed with several 50-basis point rate increases. Federal Open Market Committee said that policy could need to shift from neutral territory into restrictive territory.
Shares on Wall Street rose following the release of the Fed minutes, with the S&P 500 climbing around 0.95% to 3,978.73. Dow Jones Industrial Average gained 191.66 point, or 0.6%. It reached 32,120.28. Tech-rich Nasdaq Composite rose 1.51% to 11,434.74.
Rodrigo Catril from National Australia Bank wrote in a Thursday letter that “The FOMC minutes revealed a wide consensus for tightening the policy rate of 50bps over the next two meetings.”
Catril explained that market relief was found on the basis of Minutes showing a wide consensus in favor 50bps rate hikes in June, July, with the possibility of a later year pause.
It U.S. dollar indexFollowing a drop in levels from 102.2 to 102.056,, which measures the greenback’s value against a basket its peers, stood at 102.056.
— CNBC’s Jeff Cox contributed to this report.