Reuters - Daily Investor Update

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Wednesday, June 14, 2017

Fed raises rates, unveils balance sheet cuts in sign of confidence

WASHINGTON (Reuters) - The Federal Reserve raised interest rates on Wednesday for the second time in three months and said it would begin cutting its holdings of bonds and other securities this year, signaling its confidence in a growing U.S. economy and strengthening job market.

Confident Fed presses on with gradual bond-trimming plan

NEW YORK (Reuters) - The Federal Reserve pressed ahead with plans to shrink its $4.5-trillion portfolio on Wednesday, mapping out a very gradual approach to shedding bonds that allows it to begin the tricky process as soon as September.

Tech drags Wall St. lower; financials buoy Dow

NEW YORK (Reuters) - A slide in technology stocks pulled down the Nasdaq Composite on Wednesday and the S&P 500 ended slightly lower as investors worried about the pace of economic growth after weaker-than-expected inflation numbers and an interest rate hike from the Federal Reserve.

Fed could start reducing balance sheet 'relatively soon': Yellen

WASHINGTON (Reuters) - The Federal Reserve could begin trimming its holdings of bonds "relatively soon," Fed Chair Janet Yellen said on Wednesday.

U.S. consumer prices, retail sales weaken in May

WASHINGTON (Reuters) - U.S. consumer prices unexpectedly fell in May and retail sales recorded their biggest drop in 16 months, suggesting a softening in domestic demand that could limit the Federal Reserve's ability to continue raising interest rates this year.

U.S. business inventories post biggest drop in six months

WASHINGTON (Reuters) - U.S. business inventories recorded their biggest drop in six months in April, which could temper expectations that inventory investment would support economic growth in the second quarter.

Barclays keeps U.S. second-quarter GDP estimate at 2.0 percent

NEW YORK (Reuters) - Barclays economists on Wednesday kept their view of U.S. economic growth in the second quarter at 2.0 percent following the government's release of retail sales in May and business inventories in April earlier Wednesday.

Atlanta Fed raises U.S. second quarter GDP growth view to 3.2 percent

NEW YORK (Reuters) - The U.S. economy is growing at a 3.2 percent annualized pace in the second quarter based on data on May retail sales and consumer prices, the Atlanta Federal Reserve's GDP Now forecast model showed on Wednesday.

Traders now see next Fed rate hike as soon as March 2018

(Reuters) - U.S. short-term interest rate futures pared earlier gains as Federal Reserve Chair Janet Yellen, following the Fed's decision to raise rates a second time this year on Wednesday, downplayed recent weakness in inflation and said she believes conditions for it to rise to the Fed's 2-percent target are in place.

Avon CEO expected to step down: WSJ

(Reuters) - Avon Products Inc Chief Executive Sheri McCoy is expected to step down, the Wall Street Journal reported on Wednesday, citing people familiar with the matter.