November 8, 2018
The Federal Reserve surprised no one with no action at today's FOMC where the only changes to the text were another upgrade for employment and a downgrade for business investment which opened the year strongly on the corporate tax cut but which then faded in the third quarter.
Stocks began to edge lower following the announcement amid expectations that the next FOMC in December will indeed produce a rate hike, one Fed policy makers have been predicting in a move that would be aimed at limiting the risk of economic overheating. Still, the Dow finished with a fractional gain to 26,191 though the Nasdaq posted a sizable 0.5 percent loss to 7,530.
Rates edged higher in post-FOMC trade with the 2-year Treasury yield, which is very sensitive to rate-hike expectations, up 2 basis points to 2.95 percent. The dollar firmed with the dollar index up 0.5 percent to 96.68. Oil keeps falling, down another $1 and near $60.50 with gold slightly lower near $1,225.