U.S. stocks pare gains as Fed signals may still tighten in 2015

U.S. stocks pared gains after the Federal Reserve signaled it remains prepared to raise interest rates as soon as December.

The Standard & Poor’s 500 Index advanced 0.2 percent at 2:01 p.m. in New York, paring a gain of 0.9 percent just before the Fed’s latest policy statement. The gauge is on track for its best month in a year.

Policy makers said the economy is still expanding at a “moderate” pace as they left interest rates unchanged, giving themselves the option to tighten policy at their next meeting in December without making a commitment to act this year.

The Fed also removed a line from September’s statement saying that global economic and financial developments “may restrain economic activity somewhat,” saying Wednesday only that the central bank is monitoring the international situation.

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The Fed move comes after bets on an Australian rate cut sent the nation’s dollar tumbling, while ramped-up stimulus in Sweden pushed government bonds higher in Europe. Crude surged the most in eight weeks on a drop in inventories. The European Central Bank signaled earlier this month that it is prepared to add to its bond-buying program.

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