The stock market showed mixed response as the Fed left rates unchanged. The post-election period has still not taken a firm direction in markets.
The Dow Jones Industrial Average was up by 0.04 percent as it went up to 26,191. The Nasdaq was down by 0.5 percent and the S&P was also down by 0.25 percent.
The Fed has kept its interest rates unchanged on Thursday. But broad hints are given and rate hikes can be expected in the very near future. For the year 2018 alone, the Fed has raised the interest rates three times. With two months to go for 2018, a hike is expected in December.
There was a mixed response from the market on Thursday. Qual comm. Inc (QCOM) was down by 8.5 percent while Tesla was up by 1 percent on the announcement of a new chairman to take over from Elon Musk, the founder of Tesla. The new chairman is Robyn Denholm, who is also one of the board members of Tesla.
The Fed continues to keep its rates unchanged at 2 to 2.25 percent. Particularly after the market upheavals in October and after the midterm elections held this week, the Fed has voted to keep the benchmark interest rates unchanged. However, the markets expect a further hike in the month of December.
The Federal Open Market Committee has noted that the unemployment rate has gone down. The data from the Labor Department shows that the jobless level has gone down to 3.7 percent, the lowest level since December 1969. However, it was also observed that the growth of fixed investment has slowed down from its brisk growth seen at the beginning of the year.
The GDP growth which was at 3.3 percent for the three quarters is expected to go down for the last quarter. The 10-year Treasury note is at 3.22 percent; its highest since 2011.