The Federal Reserve expects interest rates close to zero from 2023 to boost the US economy. More with Fox Business’ Edward Lawrence.
US equity futures Concerns escalated on Wall Street ahead of Thursday’s session Corona virus Excitement.
The main futures index indicates a decline of 1.0%, or more than 200 Dow points.
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America Federal Reserve On Wednesday it was suggested that its benchmark interest rate would remain close to zero until at least 2023 but did not announce plans for additional stimulus.
President Jerome Powell promised the Fed that “we will not lose sight of the millions of Americans who keep working” but gave no indication of new stimuli.
Following the Fed’s comments, Wall Street’s benchmark S&P 500 index closed 0.5% lower. The Dow Jones Industrial Average rose 0.1% to 28,032.38. The Nasdaq Composite lost 1.3% to 11,050.47.
| Ticker | Security | The last | Change | Change% |
|---|---|---|---|---|
| Me: DJI | Dow Jones average | 28032.38 | +36.78 | + 0.13% |
| SP500 | S&P 500 | 3385.49 | -15.71 | -0.46% |
| I: Comp | Nasdaq Composite Index | 11050.469071 | -139.85 | -1.25% |
On Thursday, the Labor Department said the number of claims for unemployment benefits fell to 850,000 last week, down from 344,000 in the previous week’s 884,000 and the lowest reading since March 1 before the coronavirus lockdown.
The Commerce Department expects the number of new homes to be built to fall by 1.2% in August, at a seasonally adjusted annual rate of 1.478 million. In context, the lowest epidemic in April saw housing go to a 5-year low of 934,000. Permits for future construction are expected to increase from 2.5% to 1.52 million.
Finally, the Philly Fed has come out with an index of manufacturing activity for East Pennsylvania, South Jersey and Delaware in September. It is expected to increase from 17.2 to 15 in .2 Gust.
Fed signals interest rates will remain close to zero near 2023 to bolster the US economy.
In Asia on Thursday, Japan’s central bank kept its interest rates unchanged and gave no indication of possible additional stimulus.
The Nikkei tumbled 0.7% in Tokyo, the Hang Seng retreated 1.6% in Hong Kong and China’s Shanghai Composite Index fell 0.4%.
In Europe, London’s FTSE fell 0.8%, Germany’s DX fell 0.8% and France’s CAC fell 0.9%.
U.S. investors are counting on Congress to support a new support package after additional unemployment benefits that help end consumer spending, but legislators are baffled at its potential size.
The Fed forecasts the economy to shrink 3..7% this year, recovering from its June estimate of .5.5%. The Fed forecast a year-end unemployment rate of 7.6%, up from 9.3% in June.
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In the energy markets, the benchmark U.S. in electronic trading on the New York Mercantile Exchange. Crude oil for delivery in October fell 18 cents to 39 39.98 a barrel. The contract rose 1.88 dl on Wednesday to reach 40.16. Brent crude for November delivery fell 15 cents to .0 42.07 a barrel in London. It is up 69 1.69 from the previous session.242.22.
The Associated Press contributes to this article.