News Column

Wall Street Down on Federal Reserve Announcement

Oct. 24, 2012

Major US stock indices slid Wednesday as the Federal Reserve pointed to factors still weighing on the US economy and announced it would hold interest rates at historic lows into mid-2015.

The central bank said the US economy was growing at a "moderate pace" and that it would continue to keep rates low as the employment situation continues to rebound.

The Fed said household spending advanced "a bit more quickly" and that the housing market improved even as business investment slowed. Inflation had picked up as energy prices rose.

The blue-chip Dow Jones Industrial Average fell 25.19 points, or 0.19 per cent, to 13,077.34. The broader Standard & Poor's 500 Index declined 4.36 points, or 0.31 per cent, to 1,408.75. The technology-heavy Nasdaq Composite Index lost 8.77 points, or 0.29 per cent, to 2,981.7.

The US currency rose against the euro to 77.11 euro cents from 77.02 euro cents on Tuesday. The dollar slid against the Japanese currency to 79.79 yen from 79.87 yen.

Source: Copyright 2012 dpa Deutsche Presse-Agentur GmbH

Story Tools Facebook Linkedin Twitter RSS Feed Email Alerts & Newsletters