U.S. stocks edged back from historical highs on Tuesday following mixed signals from Federal Reserve officials about the course of interest rates. New York Fed President William Dudley said in a television interview that the economy should strengthen later in the year and that the U.S. presidential race won't affect the Fed's decisions on the course of rates. The Fed on Wednesday is scheduled to release minutes of its most recent meeting. However, a paper released by San Francisco Fed President John Williams suggested a possible increase to the inflation target, which would give the bank room to keep rates lower for longer. Data on Tuesday showed U.S. consumer prices were flat in July, a signal that inflation remains modest. Stocks sensitive to changes in interest rates, such as telecommunications companies, were among the biggest decliners in the S&P 500.
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