Wall Street posts modest gain as Fed signals rates to hold for some time

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Wall Street posts modest gain as Fed signals rates to hold for some time
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Wall Street's main stock indexes ended modestly higher on Wednesday after t...

- Wall Street’s main stock indexes ended modestly higher on Wednesday after the U.S. Federal Reserve held interest rates steady and signaled that borrowing costs are likely to remain unchanged indefinitely.

The U.S. central bank said moderate economic growth and low unemployment are expected to continue through next year’s presidential election. “You are looking at a cautiously optimistic Fed,” said Karl Schamotta, chief market strategist at Cambridge Global Payments in Toronto. “The tone that you see through the statement and projections suggest that they believe that they have taken out enough insurance to prevent a downturn.”

With the Fed expected to stand pat on rates this time, investors have been more focused on U.S.-China trade relations, including new tariffs on Chinese goods. President Donald Trump has said the new tariffs will go into effect on Dec. 15, but uncertainty remains over whether they will be implemented.

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