NEW YORK (Reuters) – The US Federal Reserve kept interest rates stable on Thursday and said that continued job gains and household spending kept the economy on track.
"The labor market has continued to strengthen and … economic activity has increased at a strong rate," the Fed said in its latest political statement, leaving its plans intact to continue to grow gradually. .
The statement reflected little change in the US central bank's economic outlook from the last September political meeting, with inflation remaining close to its 2% target, falling unemployment and the risks to the economic outlook that seemed "approximately balanced".
STOCK: The S & P 500 extended losses and fell 0.6%. The Dow was stable, so it lost 0.3%. BONDS: The yield on 1
FOREX: The dollar index rose 0.58 percent.
GENE TANNUZZO, GLOBAL VECTOR HEAD OF FIXED INCOME, COLUMBIA THREADNEEDLE, MINNEAPOLIS
"They did not take the opportunity to say that the financial conditions were tightened. this may be slightly important, and it smells like a situation where I think they say, "We are looking forward to an excursion in December. We want to remain as close as the last statement. "There are people who are not satisfied with this statement because they were looking for a more accommodating tone after last month's market volatility, which is why we see increased short-term returns and stocks here, and they are still on track. open questions Are we close to a neutral level on tariffs? What will happen to the maximum size of the Fed budget? There is nothing in the big data that would shake them from the current political path. "
PETER CARDILLO, ECONOMIST OF THE CAPITAL MARKET, TITLES OF THE CAPITAL SPARTANO, NEW YORK:
"It was in line with what I was looking for, and that was what the market was looking for.
" They cited consumption spending as strong, a narrow labor market, and these two factors simply mean that tariffs have to move higher to at least reach a normalized level so that the economy does not overheat.
"You can see that the reaction in the market (stock) is essentially nothing, only mixed today, coming out of a strong demonstration yesterday.I think the Fed's message is this: the rates go up for the right reasons, not for the wrong reasons, so they should not negatively affect the actions. "
TIM GHRISKEY, CHIEF INVESTMENT STRATEGIST IN THE WORLD INVERNESS IN NEW YORK: " There were a couple of changes from the previous statement, nothing Huge corporate investment, they admitted that its growth rate has been moderate, we see it in the data, this is really the only change of meaning, I do not think there's something in here that says the Fed needs tighten in December, but remain at a pace to be tightened in December .They have telegraphed it very clearly.If you look historically while they are at the PCE core rate, they admit both their medium-term objective, historically h year on purpose that percentage of an average of 0.9 percent. So we expect the Fed not only to move in December, but also two or three times in 2019. And on equal terms, they have achieved their goal.
"The stock market is always unstable and especially after the Fed announcement, regardless of what has been said." Because of this line of fixed investments, it showed a little caution from part of the Fed to become too aggressive and the market welcomes it. "
RICK RIEDER, CHIEF INVESTMENT OFFICER FIXED GLOBAL INCOME, BLACKROCK INC, NEW YORK, NY
" The only interesting change in the declaration of today it was a reference to a certain moderation in corporate fixed investment The Fed is clearly starting to recognize a dynamic that has worked through the economy, in the form of a tangible restriction of financial conditions. "
QUINCY KROSBY, CHATF MARKET STRATEGIST, PRUDENTIAL FINANCIAL, NEWARK, NEW JERSEY
"The Fed did not mention recent market action, but they did note the slowdown in corporate investment. 9, the expectation is that corporate investments increase: one, due to a stronger economy, but above all because of the tax cuts for companies associated with the depreciation provided to companies for corporate spending. They did not say this, but many companies are trying to figure out what is developing with the tariff issues with China. The fact is that with more business expenses, you have more help with the underlying economy. A slowdown in corporate spending can slow down the strengthening of the stock market. "
" Demand for the market is: does the Fed depend on data or is it maintaining a tight timetable for rate hikes in 2019? What would the Fed stop? It is clear from this statement today that they are looking at everything that could potentially slow down the economy. Business spending is important, because the business increases the amount of investment helps push up the GDP. "
JASON WARE, CHIEF INVESTMENT OFFICER, ALBION FINANCIAL, UTAH
" We have had some volatility around the relationship, but it seems to have settled. I do not think there is anything in terms of surprises. The only change that I think is noteworthy is that the growth of fixed investment for companies has been moderate, perhaps it is a matter of some attention, but it is difficult to know what it means. It could be a whole series of factors. But what does this mean for Fed policy? I do not think it is a hawk, both colossal and neutral. "
YOUSEF ABBASI, GLOBAL MARKET STRATEGIST, NTL FCSTONE, NEW YORK
" There is very little that is new in this statement. The fact that they are highlighting business investment has been moderated is certainly something to consider. On the other hand, of course, household spending continues to grow strongly. It shows you that the Fed understands that we continue to travel the path of an economy that is healthy and that is doing very well.
"We have a strong economy and business investment is something that we hope will change if we could get a trade agreement.
" For today, it is constant as we move forward. Once again, expectations should have us quite well here. We knew what would happen and the Fed issued a benevolent statement. We should be meandering in daytime trading. "
BRAD MCMILLAN, CHIEF INVESTMENT OFFICER, COMMONWEALTH FINANCIAL NETWORK, WALTHAM, MASSA
" I read the statement and I saw the word strong three times. The only real whisper of concern was that business investment had been moderate. "
" What the statement indicates in general is that they are still on track to increase rates. December is in the plan and they see no reason to slow down or stop the rate hike. "
" This is very much in line with what the market expected. I see the market today that moves away from the strong gains of yesterday. There are no real news in the statement. "
JAMIE COX, PARTNER MANAGER, HARRIS FINANCIAL GROUP, RICHMOND, VIRGINIA
" Besides pointing out that fixed business investments have moderated some since the beginning of the year, this is the only part of the declaration that is really changed. "
" The Fed acknowledged that there is a part of the economy that is slowing down a bit, but it does not deter them from their language of gradual growth. Not yet anyway. We will see if this will materialize in December, when the expected rate increase should take place. "
" There is really nothing to indicate about what the market had hoped, that there would be a more accommodating position. So I think this is more than what we call a hawkish hold. "
" The markets have pushed the Fed, I think, to reconsider its rate hike path. In October, we had this very large market decline and some had speculated that it would influence the Fed's decision to increase rates in December. I never thought about it, and the Fed rarely uses the short-term market volatility to deter it from its path. So I think it was a false hope, and this is a bit stable like her. "
TOM SIMONS, ECONOMIST OF MONEY MARKET, JEFFERIES, NEW YORK:
" There was little change in the statement, which was probably as expected. The changes occurred are consistent with the GDP data released at the end of October. The characterization of employment and inflation are also consistent with the data and consistent with the continuing expectations of a rate hike in December. There was no impact on the Treasury market. In addition to entering as planned, it is also along the continuum of the policy that has been communicated for a long time. "
BORIS SCHLOSSBERG, FX STRATEGY DIRECTOR, BK ASSET MANAGEMENT, NEW YORK
" The Fed has really kept up with expectations. The only surprise here is that they were no longer hawks. There were a couple of words that were more subdued – that business investment had "moderated" from the previous pace. But other than that, they did not signal any alarm signal. "
" The dollar had gathered in the statement, so it's unclear how much more juice will get with the Fed coming as expected. "
" There is no change in the Fed's policy – they will continue to raise interest rates by 25 basis points until something will change. "
Americas Economics and Markets Desk; + 1-646 223-6300  Our Standards: The Thomson Reuters Trust Principles