Fed hikes rates. Here's what to do now

But with Donald Trump's election victory, the Times said, companies in manufacturing and other industries "have become more confident about the outlook since late past year, at least in part because of hopes that tax cuts and other favorable policies will be coming from the new Trump administration and his party that controls Congress".

Prices for benchmark 10-year Treasuries slipped 7/32 to yield 2.606 percent, from a yield of 2.582 percent late on Friday.

One rate hike won't change the world but higher rates affects millions of Americans. That's because, with the widely-telegraphed rate increase all but baked into expectations, the market's attention is now turning to the projected path of interest rates - that is, how quickly will the Fed raise rates later this year. Another reason not to rush the next hike: the Atlanta Fed's GDPNow indicator has just slipped rather sharply in a matter of weeks from 2.5% for the first quarter to just 0.9%.

The interest rates on auto loans are not determined by what the Federal Reserve does.

Amid mild winter weather across much of the country, residential and commercial construction employers combined added a 58,000 jobs last month, bringing the industry's net payroll growth in the first two months to 98,000 - compared to 155,000 for all of past year.

Norman said the gold market "clearly got itself going into the Fed announcement" and saw good short covering, or unwinding bets that prices will fall in value.

Brokers Add To Their Ratings On Marathon Oil Corporation (NYSE:MRO)
Normally this spread should be in positive territory, indicating that analysts expect an investment's value to increase over time. The firm's price to book was 0.74, which can be compared with current price to get idea about under or overvalue of stock.

South Africa wins toss, choose to field against NZ in second test
South Africa has won the toss and will bowl in the second test against New Zealand at the Basin Reserve today. Wellington has a good history for South Africa who have won four of six Tests in the New Zealand capital.

EPA To Review 2025 Vehicle Emissions Rules
The effort hands a victory to industry officials, provoking criticism from Democrats and environmental groups . Thirteen other states have adopted California rules that account for about 40 percent of US vehicle sales.

"The Fed is likely moving now before worldwide (European elections, Brexit) and domestic uncertainties (the legislative agenda) cloud the picture", says Carl Tannenbaum, chief economist at Northern Trust.

Further rate increases would only be "gradual", the Fed said in its policy statement, with officials sticking to their outlook for two more rate hikes this year and three more in 2018. Before the election, a typical 30-year fixed rate mortgage was 3.5%, according to Freddie Mac. All those can factors can pinch profits.

While markets had fully priced in Wednesday's rate hike, investors had been waiting for clues on the central bank's future monetary policy. It then waited an entire year before raising rates again in December last year.

United States crude fell 0.3 percent to $48.34 a barrel, and touched its lowest point since Nov 30.

President Trump has big plans to spend on overhauling USA infrastructure. The Fed has tried to prop up the economy since the Great Recession with super low interest rates. Trump is promising 4% annual growth. Employers have added jobs for the last 77 straight months, unemployment has edged lower and wage growth has been increasing. But the number of Fed officials who think three rate hikes will be appropriate for 2017 rose from six to nine. But rates on some other loans - notably credit cards, home equity loans and adjustable-rate mortgages - will likely rise soon, though only modestly. That could cool spenders' appetite.

Like this


16 March 2017
Monaco knock Manchester City out of Champions League
The former Manchester United and Chelsea striker was ruled out with the hip injury he suffered against Bordeaux on Saturday. Mbappe thought he had doubled his tally after 15 minutes, but he was correctly flagged down for offside.

16 March 2017
China aims to smooth out Trump rows before USA summit
He argued that the renminbi's 7 per cent decline against the USA dollar previous year was "quite modest" compared with that of other currencies.

16 March 2017
US Women's National Hockey Team players threaten to boycott World Championship
Instead, the American players say they will boycott the championships amid their ongoing fight with USA Hockey for a living wage. The USWNT's fight for equal pay served as inspiration for the hockey team, Duggan said, and they hope to have a similar effect.