The Next Big Test for the Global Stocks Rally is U.S. Fiscal Policy
- Hong Kong leads Asian gains as China follows Fed hiking rates
- Risk Trump fiscal policy disappoints is next market challenge
Yellen's Rate Hike Press Conference in Two Minutes
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A Goldilocks policy statement from the Federal Reserve and similar action out of China kept the global rally in equities going on Thursday. And with European political concerns ebbing for now, the next test may be U.S. fiscal policy.
Fed officials delivered the quarter-point interest-rate hike they had telegraphed, while stopping short of boosting the outlook for further increases in the next two years beyond their previously predicted trajectory. A few hours later, the People’s Bank of China raised borrowing rates for lenders, while emphasizing that there was no change in its overall policy stance or a need to over-interpret the action.