Published: Thu, May 25, 2017
Money | By Armando Alvarado

US Fed ties rate hike to economic rebound


The statement points toward a rate hike as soon as next month following the FOMC's two-day policy meeting June 14-15.

Still, the minutes were the latest indication of the Fed's heightened caution over policy tightening since the central bank began lifting rates from near zero in December 2015.

Still, Raymond Stone warned in a research note that if losses were to materialize, they "could become a political "hot potato" inviting unwanted congressional intrusion, compromising Fed independence".

"Last month's dip in closings was somewhat expected given that there was such a strong sales increase in March at 4.2 percent, and new and existing inventory is not keeping up with the fast pace homes are coming off the market", Yun said in the report. Treasury investors also liked the Fed's plan because of the options it gives the central bank. U.S.

KEEPING SCORE: The Standard & Poor's 500 index edged up 2 points, or 0.1 percent, to 2,400 as of 10:25 a.m.

Stock movers: Shares of Bunge Ltd.(BG) rose 1.1%, extending a 17% rally on Tuesday that came on news that commodities giant Glencore PLC (GLEN.LN) (GLEN.LN) had approached the grain trader about a potential takeover (http://www.marketwatch.com/story/glencore-makes-takeover-approach-to-bunge-2017-05-24). The U.K.'s FTSE 100 Index rose 0.4 percent or 29.61 points to 7,514.90, the French CAC 40 Index edged up by 0.3 percent or 16.94 points to 5,341.34 and the German DAX Index grew 0.3 percent or 39.69 points to 12,642.87. Dow picked up 67 cents, or 1.1 percent, to $61.45 and DuPont advanced $1.04, or 1.3 percent, to $78.38.

Don't sell 'dangerous arms' to terror supporters, Iran tells Trump
Trump, 70, is now on his first foreign trip since becoming president. "And if you both are willing, we're going to make a deal". The worldwide community does not recognise Israeli sovereignty over Jerusalem and maintain their embassies in Tel Aviv.

Building products retailer Lowe's (LOW) dropped 3% shortly after the open.

Among the other major gainers, SoftBank Group gained nearly 4 percent amid media reports that the company has purchased $4 worth of stock in Nvidia, Furukawa Electric rose 3.5 percent and Konami Holdings advanced 3.4 percent.

Benchmark U.S. crude lost 11 cents to settle at $51.36 per barrel in NY while Brent crude, used to price global oils, sank 19 cents to $53.96 a barrel in London. Members continued to judge that there was significant uncertainty about the effects of possible changes in fiscal and other government policies but that near-term risks to the economic outlook appeared roughly balanced.

Canada's dollar strengthened to a one-month high against its US counterpart after the Bank of Canada was more upbeat about the economy than some investors expected and as major oil producers looked set to possibly extend production cuts. Toshiba added 0.24 percent, Panasonic advanced 1.04 percent, Canon added 0.16 percent and Sony edged up 0.08 percent. The mainland-listed shares of Citic Securities were down 0.76 percent, Haitong fell 0.75 percent and Guosen tumbled 1.19 percent.

Copper fell approximately 0.5%, closing at US$2.56 per pound. Hong Kong's Hang Seng Index was up 0.41 percent. It peaked to hit session high at 112.10 and made session lows at 111.51 levels. The Kospi in South Korea gained 0.2 percent.

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