Wall St. ends lower after Yellen comments fail to inspire

Thrugelmir

Finally the end of ultra low interest rates is in sight. How long before the volatility impacts the UK.

U.S. stocks ended weaker on Friday after Federal Reserve Chair Janet Yellen indicated that the central bank was poised to raise interest rates this year, in line with Wall Street's expectations.

Lackadaisical trading volume during the session ended a week of slow activity that has left many investors unconvinced that recent record-high levels are likely to last.

In a speech, Yellen said a rate hike would be warranted this year if the economy keeps improving as expected. She also said it would take several years to return to normal interest rates.

Investors have enjoyed an extended period of low volatility and steady gains, but with the Fed on track to raise rates this year and major indexes near records, the market could get a bit choppier in coming weeks.

“I think what Janet Yellen and all of the Fed officials have been doing is very carefully choreographing their move. I think this is probably the most telegraphed Fed liftoff in some time," said Bruce Zaro, chief technical strategist at Bolton Global Asset Management.

http://www.reuters.com/article/2015/05/22/us-markets-stocks-us-idUSKBN0O71BF20150522

purch

It's going to be very an interesting, and potentially a dangerous time.

When the US starts to actually raise rates it will be difficult for Europe not to do likewise, but neither the UK and to a greater extent the EU are in a position where higher rates won't potentially cause problems.

padington

I wonder if U.S. Might raise rates but not much, Europe and Uk follow by not much but the markets goes banana's, massive sugar low kicks in, headache starts, migraine threatens and eventually the Americans decide not to do that again if they can help it and we begin to realise the whole back to normal thing might take a generation if not more.

CLAPTON

well, there have many previous occasions when rises have been predicted but failed to take place.

anyway if they do rise surely that is good news, as it mean the USA is recovering well and output is expanding: whats to be concerned about that?

Thrugelmir

CLAPTON wrote: »

well, there have many previous occasions when rises have been predicted but failed to take place.

Yellen appears to be making a clear signal on behalf of the Fed. In order to maintain an orderly market.

CLAPTON

Thrugelmir wrote: »

Yellen appears to be making a clear signal on behalf of the Fed. In order to maintain an orderly market.

haven't previous incumbents had clear signals in order to maintain an orderly market? (quite a lot of times)