Market Watch: Comments by a Fed President startles Investors

Stocks fell from their record highs today as comments from one of the Federal Reserve bank presidents spooked investors on Wall Street.
New York Fed President William Dudley said that a September rate hike “is possible.”

Dudley told Fox Business Network

“I don’t think my views have changed very much. I think we’re looking for growth in the second half of the year that’ll be stronger than the first half — so some acceleration in the growth outlook. We’re edging closer towards the point in time where it’ll be appropriate to raise interest rates further. I think a September rate hike possible.”

See interview below.

San Francisco Fed President John Williams said in a recent paper that central banks might have to raise inflation targets, focus more on growth and back much looser fiscal policy in future. The Fed is scheduled to release the minutes of its July meeting Wednesday at 2 p.m.

Meanwhile, the chief investment officer of AIG’s enormous $350 billion dollar investment portfolio said today that he doesn’t think Federal Reserve banks care about retirement funds.  AIG CIO Doug Dachille told CNBC’s Squawk Box-

“All savers are being negatively affected by easy monetary policies around the globe. All this reduction in interest rates, while it’s certainly been good for the appreciation of the asset side of everybody’s balance sheet, unfortunately it’s increased the value of the liability side of the balance sheet,and the average person doesn’t know the implicit liabilities that they have.”

See more below.

Here are the final numbers from Tuesday, August 16th, 2016 on Wall Street:

Dow Jones Industrial Average: 18,552.02  (-84.03 / -0.45%)

NASDAQ: 5,227.11 (-34.90 / -0.66%)

S&P 500: 2,178.15  (-12.00/ -0.55%)

Phil Cannella

Phil Cannella

As a partner with CBS Radio in Philadelphia, Phil Cannella reports on the issues most important to the American retiree.
Phil Cannella
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Phil Cannella
Phil Cannella
Phil Cannella

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