News Column

Stocks Swing on FOMC Minutes, Yellen Nomination

October 9, 2013

Staff Reports -- HispanicBusiness.com

U.S shares wobbled through another day of trading Wednesday following the release of the monthly Federal Open Market Committee minutes and Janet Yellen's official nomination to succeed Ben Bernanke as chair of the Federal Reserve.

The minutes from the FOMC's Sept. 16-17 meeting showed most members are in favor of reducing bond buying this year, and that "most participants viewed their economic projections as broadly consistent with a slowing in the pace of the committee's purchases of longer-term securities this year and the completion of the program in mid-2014."

It is expected that the FOMC will dial down monthly Treasury purchases by $5 billion, to $40 billion, while maintaining its buying of mortgage-backed securities at $40 billion. The strategy for winding down purchases is still under discussion, however, with some members preferring a reduction only in Treasuries.

President Obama said today that Ms. Yellen is "exceptionally qualified" to lead the Fed due to her realistic, detailed outlook and because she manages "to build consensus" among different parts and members of the government.

Ms. Yellen promised in her nomination speech to promote maximum employment and stable prices.

In trading today, the Standard & Poor's 500 Index climbed 0.06 percent to 1,656.49 and the Dow Jones Industrial average rose 0.18 percent to 14803.00, while the Nasdaq dipped by 0.46 percent to 3677.78 at 4 p.m. in New York.

ICN.com Financial Markets contributed.


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