The Federal Reserve hiked interest rates for the first time in nearly a decade on Wednesday, signalling faith that the U.S. economy had largely overcome the wounds of the 2007-2009 financial crisis, according to Reuters
The U.S. central banks policy-setting committee raised the range of its benchmark interest rate by a quarter of a percentage point to between 0.25 percent and 0.50 percent, ending a lengthy debate about whether the economy was strong enough to withstand higher borrowing costs.
The Committee judges that there has been considerable improvement in labour market conditions this year, and it is
reasonably confident that inflation will rise over the medium term to its 2 percent objective, the Fed said in its policy statement, which was adopted unanimously.
The Fed made clear that the rate hike was a tentative starting to a gradual tightening cycle, and that in deciding its next move it would put a premium on monitoring inflation, which remains mired below target.
In light of the current shortfall of inflation from 2 percent, the Committee will carefully monitor actual and predictable progress toward its inflation aim. The Committee anticipates that economic conditions will evolve in a manner that
will warrant only gradual improvements in the federal funds rate, the Fed said.
New economic projections from Fed policymakers were largely unchanged from September, with unemployment anticipated to fall to 4.7 percent next year and economic growth at 2.4 percent.
The statement and its promise of a gradual path represents a compromise between those who have been ready to raise rates for months and those who feel the economy is still at risk.
The median projected target interest rate for 2016 remained 1.375 percent, implying four quarter-point rate hikes next year.
Financial markets had predictable the rate hike, bolstered by recent U.S. data showing job growth ongoing at a strong pace. Reuters Report
Following Financial Stocks Update: Bank of America Corp (NYSE:BAC), Banco Bradesco SA (ADR) (NYSE:BBD), Citigroup Inc (NYSE:C), ICICI Bank Ltd (ADR) (NYSE:IBN)
Share of Bank of America Corp (NYSE:BAC) dropped -0.14% and is at $17.42 in the Real-Time trading session. The company opened at $17.65 on Wednesday, and is moving between $17.24 – $17.78, through the day. Bank of America Corporation is a bank holding company and a financial holding company. The Company is a financial institution, serving individual consumers, small- and middle-market businesses, institutional investors, corporations and Governments with a range of banking, investing, asset administration and other financial and risk administration products and services. Through its banking and various nonbank auxiliaries, it provides a range of banking and nonbank financial services and products.
Banco Bradesco SA (ADR) (NYSE:BBD) gained 0.09% right now and is at $5.31. The 52-week range of the share price is from $5.00 – $11.84. The company has total market capitalization of $ 28.37B. Banco Bradesco S.A. (the Bank) is a commercial bank. The Bank offers a range of banking and financial products and services in Brazil and abroad to individuals, companies and local and international corporations and institutions. Its products and services comprise banking operations, such as loans and advances and deposit-taking, credit card issuance, purchasing consortiums, insurance, leasing, payment collection and processing, pension plans, asset administration and brokerage services.
Shares of Citigroup Inc (NYSE:C), inclined 1.18%, and is now trading at $53.14. Its overall volume is 13.94M shares right now, and average trading volume of 16.29M. Citigroup Inc. (Citi) is a financial services holding company, whose businesses provide consumers, corporations, governments and institutions with financial products and services, counting consumer banking and credit, corporate and investment banking, securities brokerage, trade and securities services, and wealth administration. The Company operates through two primary business segments: Citicorp and Citi Holdings. Citicorp comprises of the operating businesses: Global Consumer Banking, which comprises of consumer banking in North America, EMEA, Latin America and Asia, and Institutional Clients Group, which comprises Banking and Markets and securities services. Citi Holdings contains businesses and portfolios of assets that Citi has determined are not central to its core Citicorp businesses. Citis consumer operations, in addition to the consumer finance business in Korea and certain businesses in ICG form part of Citi Holdings.
ICICI Bank Ltd (ADR) (NYSE:IBN) gained 1.38% right now and is at $7.37. The 52-week range of the share price is from $7.19 – $13.24. The company has total market capitalization of $21.48B. ICICI Bank Limited is a banking company. The Bank is a financial services group providing a range of banking and financial services counting commercial banking, retail banking, project and corporate finance, working capital finance, insurance, venture capital and private equity, investment banking, broking and treasury products and services. Its operating segments comprise Retail Banking, Wholesale Banking, Treasury, Other Banking, Life Insurance, General Insurance and Others. Retail banking comprises exposures of the Bank, which satisfy the criteria of orientation, product, granularity and low value of individual exposures for retail exposures laid down in Basel Committee on Banking Supervision document International Convergence of Capital Measurement and Capital Standards: A Revised Framework.
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