|
The
Fed cited worries about the global economy, financial market
volatility and sluggish inflation at home in its decision to
leave rates unchanged, but left the door open for a modest
policy tightening later this year.
Investors are now focusing on the Fed meeting on Oct. 27-28 as
the next chance for the central bank to raise interest for the
first time since 2006.
However, a growing number of economists, including those at
Morgan Stanley and Barclays, are now wondering whether the Fed
will raise rates at all this year.
Interest rate futures indicated only a 21 percent chance of a
hike at the Fed's next meeting, with a 47 percent chance in
December.
Twelve of the 17 primary dealers, or banks that deal with the
Fed directly, said they expect the Fed to raise rates in
December, according to a Reuters poll. Two pegged it for
October, and three for March 2016.
Wall Street closed lower on Thursday, with bank stocks <.SPSY>
leading the decline following the Fed's announcement. Banks
benefit from higher interest rates.
Shares of Citigroup <C.N>, Bank of America <BAC.N>, Wells Fargo
<WFC.N> and JPMorgan <JPM.N> were down between 0.5 percent and
1.2 percent in premarket trading on Friday.
Adobe Systems <ADBE.O> was down 2.9 percent at $78 a day after
the company issued a profit forecast that missed expectations.
(Reporting by Tanya Agrawal; Editing by Saumyadeb Chakrabarty)
[© 2015 Thomson Reuters. All rights
reserved.] Copyright 2015 Reuters. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed.
 |
|
