S&P closes higher after Fed minutes confirm inflation focus

Record ID: 1705167

  • Title: S&P closes higher after Fed minutes confirm inflation focus
  • Date: 4th January 2023
  • Summary: MINNEAPOLIS, MINNESOTA, UNITED STATES (JANUARY 4, 2023) (REUTERS) (SOUNDBITE) (English) SENIOR VICE PRESIDENT, HEAD OF PUBLIC MARKETS GROUP, US BANK WEALTH MANAGEMENT, LISA ERICKSON, SAYING: "We just have a tough environment for investors to navigate. We have obviously hoped that things are going to turn with the potential Fed pause and pivot, but the data continues to come in more difficult and inflation still is elevated. So really what you see is investors just see-sawing back and forth as we get different headlines." WHITE FLASH (SOUNDBITE) (English) SENIOR VICE PRESIDENT, HEAD OF PUBLIC MARKETS GROUP, US BANK WEALTH MANAGEMENT, LISA ERICKSON, SAYING: "Coming out of the December Fed meeting, the Fed really emphasized its commitment to fighting inflation and was fairly resolute in saying that while it will continue to monitor the incoming data, it will stay the course until it believes the job is done. And so what you're seeing here with these minutes is really a continuation of that tone where the Fed is re-emphasizing, even if they potentially slow the pace again to 25 basis points in the next Fed meeting, they still are very committed to fighting inflation."
  • Embargoed: 18th January 2023 21:08
  • Keywords: Dow Jones NYSE new year stock market
  • Location: NEW YORK, NEW YORK + MINNEAPOLIS, MINNESOTA, UNITED STATES
  • City: NEW YORK, NEW YORK + MINNEAPOLIS, MINNESOTA, UNITED STATES
  • Country: US
  • Topics: Economic Events,North America,Equities Markets
  • Reuters ID: LVA002044504012023RP1
  • Aspect Ratio: 16:9
  • Story Text: The S&P 500 finished Wednesday's (January 4) session higher following the release of minutes from the Federal Reserve's last meeting, which showed officials laser-focused on controlling inflation even as they agreed to slow their interest rate hiking pace.
    Officials at the Fed's Dec. 13-14 policy meeting agreed the U.S. central bank should continue increasing the cost of credit to control the pace of price increases, but in a gradual way intended to limit the risks to economic growth.
    Investors were poring over the Fed's internal deliberations for clues about its future path. After the meeting, Fed Chair Jerome Powell had said more hikes were needed and took a more hawkish tone than investors had expected back then.
    While some money managers said the minutes should have held a little surprise, traders appeared taken aback by the Fed's continued to vow to keep fighting inflation until it is convinced it's been tamed.
    McKinney pointed to the minutes for evidence of Fed officials' concern that an unwarranted easing of financial conditions would complicate their efforts to fight inflation.
    The S&P 500 gained 28.83 points, or 0.75%, to end at 3,852.97 points, while the Nasdaq Composite gained 71.78 points, or 0.69%, to 10,458.76. The Dow Jones Industrial Average rose 133.40 points, or 0.40%, to 33,269.77.
    Earlier in the day, data showed U.S. job openings in November indicating a tight labor market, giving the Fed cover to stick to its monetary tightening campaign for longer, while other data showed manufacturing contracted further in December.
    (Production by: Chris Dignam, Dan Fastenberg)
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