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Business

Markets cheer inaction at the Federal Reserve

Opening sequence

Opening sequence

Business

Markets cheer inaction at the Federal Reserve

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COMING UP:Markets cheer inaction at the Federal Reserve

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Transcript

00:00:01
>> Wall Street giving the Federal Reserve a resounding seal of approval Wednesday. Stocks taking flight and sending the NASDAQ to a record high. After the Federal Reserve surprised few by deciding not to raise interest rates. It did, however, give a clear signal it intends to do so by the end of the year.
00:00:18
Janet Yellen giving the rationale behind the decision to wait.>> Our decision does not reflect a lack of confidence in the economy. But with labor markets slack being taken up at a somewhat slower pace than in previous years, scope for some further improvement in the labor market remaining, and inflation continuing to run below our 2% target.
00:00:42
We choose to wait for further evidence of continued progress toward our objectives.>> In other words, the Fed wants to see if more hiring occurs and if that pushes the economy out of slow growth mode. But that decision was far from unanimous, three policy makers felt so strongly that rates should go up now, they were willing to go on the record as dissenters.
00:01:04
The biggest number to vote against a Fed decision in almost two years. Expectations are now on the Fed to hike in December. But that won't be fast enough for Donald Trump, he's accused Yellen of playing politics and keeping rates low to boost Obama's approval rating. When asked about that accusation.
00:01:21
>> The Federal Reserve is not politically compromised.>> Yellen dismissed any such thing.