Fed raises rates. It'll cost you more to borrow

Global shares fall on Fed rate hike, plunge in oil prices

Global shares fall on Fed rate hike, plunge in oil prices

The relatively firm Federal Reserve statement from Wednesday and an unexpected 5-3 Bank of England vote to hold interest rates at 0.25% had some impact in shifting expectations surrounding global central bank policies with a slightly more hawkish slant than had been priced in.

The revision came just after the Fed raised interest rates Wednesday for the 2nd time in 3 months and said it would begin cutting its holdings of bonds and other securities this year, signaling its confidence in a growing U.S. economy and strengthening job market.

The FOMC continues to expect that, with gradual adjustments in the stance of monetary policy, economic activity will expand at a moderate pace, and labor market conditions will strengthen somewhat further.

Federal Reserve policymakers lowered their forecasts for inflation and unemployment, and continued to predict they would raise rates once more this year.

They lowered projections for 2017 to 1.6% from their March estimate of 1.9%. Inflation was expected to be at 1.7% by the end of this year, down from the 1.9% previously forecast.

What happens to Instacart in the Amazon-Whole Foods deal?
Walmart , which has the largest share of the USA grocery market, is ramping up its grocery services as a way to fuel online sales. Amazon's resources and online channel will make it "a larger threat in the food retailing market", she told the E-Commerce Times.

Analysts in recent weeks have become increasingly doubtful there would be a third rate increase later this year, as inflation, consumption and other economic data have indicated the weakness seen in the first quarter has continued.

The clear outline has been given by Fed on its decision to cut down its $4.2 trillion portfolio of Treasury bonds and mortgage-backed securities.

US stock futures signalled a rocky start on Wall Street after Wednesday's rate hike and another tumble in tech stocks.

The move registered swiftly in markets, with the territory's one-month interbank rate, known as HIBOR, jumping the most in six months, and a gauge of property stocks in Hong Kong retreating more than 1 percent. The Fed expects that inflation will not hit the current target, of two percent, and it has revealed plans for unwinding the post-asset purchasing balance sheet, which now totals nearly $4.5 trillion. Minneapolis Fed President Neel Kashkari dissented in Wednesday's decision. Some gains are expected on Wall Street later, with the futures for both the Dow and S&P 500 up 0.1 percent. Most credit cards and home equity lines of credit are linked to the prime rate, so the rates on those will rise a quarter-point, too.

In her press conference after the announcement, Fed Chair Janet Yellen asserted that US economic growth appears to have rebounded enough to justify both higher rates and a return of Fed-held assets to the wider market.

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