US markets poised for record finish after Fed hikes rates

By StocksFOXBusiness

Vanguard Group CEO on the state of the US markets

Vanguard Group CEO Bill McNabb on the state of the markets.

The major U.S. stock indexes held higher on Wednesday after the Federal Reserve moved, as expected, to increase interest rates.

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Wednesday was a record-setting session for stocks, with the Dow and S&P 500 climbing to new records in the first 10 minutes of trading and then building on those gains after House and Senate Republicans reached an agreement on final tax-cut legislation.

At 2 p.m. ET, the central bank announced it would increase its benchmark rate by a quarter percentage point to between 1.25% and 1.5%. This was the Fed’s third rate increase this year.

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The Fed also maintained its earlier forecast for three quarter-point rate hikes in 2018.

The Fed sees 2017 GDP coming in at 2.5%, up from its prior forecast for 2.4%, while the Fed sees GDP slowing in 2019 to 2.1% and to 2.0% in 2020.

Both the Dow and S&P are on track for their fourth straight record close.