New York [US], March 23: US stocks retreated from near two-week highs on Wednesday after the Federal Reserve raised borrowing costs, but signaled that it might be on the verge of pausing future interest rate hikes amid recent turmoil in financial markets.
As expected by many investors, the Fed raised interest rates by 25 basis points on Wednesday, but omitted from saying in its latest policy statement that "ongoing increase" in rates will likely be appropriate, Reuters reported.
Markets interpreted the omission as a sign that rates might be peaking, and drove Treasury yields to session lows after the Fed's statement was released.
The Dow Jones Industrial Average (.DJI) fell 0.3%, the (.SPX) gained 0.1%, and the Nasdaq Composite Index (.IXIC) pulled back to stand flat.
Source: Emirates News Agency