Federal Reserve raises rates


The markets traded mixed during the midday with the Dow adding 11 points to 21,340. Nasdaq slipped 8 point to 6,211.

The Federal Reserve increased interest rates by a quarter percentage point to range between 1% and 1.25% amidst a strong job market and healthy economic growth. The nation's unemployment rate fell to 4.3% last month, its lowest level in sixteen years. The Fed will also begin reducing its $4.5 trillion portfolio of Treasury bonds and mortgage-backed securities.

Volkswagen owners in Europe will be offered an extended two-year warranty on their diesel cars but no cash compensation. The German automaker agreed to a $4.3 billion settlement with U.S. regulators over its diesel emissions cheating scandal earlier this year. European Union officials have insisted that European customers be compensated but Volkswagen has asserted that no European law was broken.

Big announcements came out of the Electronic Entertainment Expo that opened yesterday at the Los Angeles Convention Center. Nintendo unveiled a New Donk City show floor exhibit and introduced upcoming games Super Mario Odyssey, Metroid Prime 4, Metroid: Samus Returns, Xenoblade Chronicles 2, Rocket League, and Fire Emblem Warriors in a 25 minute livestream. Microsoft's Xbox One X will launch this November at a price of $499.

In the broad market, declining issues outpaced advancers by a margin of more than 4 to 3 on the NYSE and by more than 5 to 3 on Nasdaq. The broader S&P 500 slipped 2 points to 2,437. Bitcoin tumbled $86 to $2602.

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This page contains a single entry by published on June 14, 2017 11:31 AM.

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