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US markets end modestly in green after Fed keep rates unchanged

18 Jun 2015 Evaluate

The US markets ended the volatile session modestly in green on Wednesday, in reaction to the Federal Reserve's monetary policy announcement. Although, the Fed left interest rates unchanged, as was widely expected, and reiterated that the outlook for rates will be data dependent but projections from the Federal Open Market Committee (FOMC) published Wednesday showed that five officials foresee one increase in the federal funds rate this year, up from just a single policy maker who said so in March. Regarding the economy, the central bank said recent data suggests that economic activity has been expanding moderately after having changed little during the first quarter. Fed policy makers reiterated in their statement that, before raising interest rates, they must be “reasonably confident” that inflation will move back to their 2 percent target over the medium term.

Fed chairwomen Yellen stressed that the date of the first rate hike is less important than the trajectory of subsequent ones. She also warned of a spillover to the US if a resolution isn’t reached on freeing up funds for Greece.

The Dow Jones Industrial Average gained 31.26 points or 0.17 percent to 17,935.74, the Nasdaq rose 9.33 points or 0.18 percent to 5,064.88 and the S&P 500 ended higher by 4.15 points or 0.20 percent to 2,100.44.

The Asian markets ended mostly in green on Wednesday, HDFC Bank was up by 0.38%, ICICI Bank was up by 0.25%, Infy was up by 0.08, Wipro was up by 0.13% and Tata Motors was up by 0.17%.

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