U.S. Stocks Sink as Dollar Swings After Fed Move: Markets Wrap

Fed’s updated projections help set expectations for 2019
European equities end slightly higher while oil drops

Fed Raises Rates and Removes Reference to 'Accommodative' Policy(Source: Bloomberg)

Provide news feedback or report an error

Confidential tip?

Send a tip to our reporters

Site feedback:

Take our Survey

By Vildana Hajric and Brendan Walsh

September 25, 2018 at 9:51 PM UTC

Updated on

September 26, 2018 at 9:12 PM UTC

This article is for subscribers only.

U.S. stocks fell and Treasuries rose after the Federal Reserve signaled it’ll keep raising interest rates even as inflation remains tepid.

The S&P 500 fell 0.3 percent, with the bulk of losses coming in the final 20 minutes of trading. Equities earlier gained after the central bank suggested inflation remained tepid, only to reverse as Chairman Jerome Powell said the Fed could raise rates past the perceived neutral level. He also raised concern about fiscal policy, calling its path “unsustainable.” The dollar was little changed after swinging between small gains and losses.