US stocks end mixed after Fed rate hike decision

New York, Dec 14 (IANS) US stocks closed mixed, with the Dow closing at a record high, as the Federal Reserve raised the benchmark interest rate by 25 basis points, the third such increase in 2017.

The Dow Jones Industrial Average on Wednesday gained 80.63 points, or 0.33 per cent, to 24,585.43. The S&P 500 fell 1.26 points, or 0.05 per cent, to 2,662.85, Xinhua news agency reported.

The Nasdaq Composite Index increased 13.48 points, or 0.20 per cent, to 6,875.80.

After the conclusion of its two-day policy meeting, the Fed announced on Wednesday that in view of realized and expected labor market conditions and inflation, the central bank decided to raise the target range for the federal funds rate to 1.25 to 1.50 per cent.

In determining the timing and size of future adjustments to the target range for the federal funds rate, the Fed will assess realized and expected economic conditions relative to its objectives of maximum employment and 2 per cent inflation.

The central bank officials still envisioned three more rate hikes in 2018, unchanged from their forecast in September, according to the latest quarterly projections released on Wednesday.

The central bank also raised its GDP estimate from 2.1 per cent in September to 2.5 per cent.

On the economic front, the Consumer Price Index (CPI) for all urban consumers rose 0.4 per cent in November on a seasonally adjusted basis, in line with market consensus, the US Labor Department reported on Wednesday. Over the last 12 months, the all items index rose 2.2 per cent.

The index for all items less food and energy (core CPI) increased 0.1 per cent in November, and it rose 1.7 per cent over the last 12 months.

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