Stocks Reach All-Time Highs as Fed Holds Steady

Janet Yellen Meets With U.S. Educators To Discuss Federal Reserve System

The Dow Jones and S&P 500 closed at record highs after the Federal Reserve announced plans to start trimming its four-and-a-half trillion dollar asset portfolio in October.

The Fed is holding its interest rate at one-and-a-quarter percent, but Chairwoman Janet Yellen did hint at a possible rate hike in December with the economy expected to continue growing at a moderate pace for the next few years.

Yellen also warned about the effects of hurricane damages, but does not expect long term economic impact.

“The hurricanes severely disrupted the labor market in the affected areas and payroll employment may be substantially affected in September, however such effects should unwind relatively quickly,” she said Wednesday.

“Based on past experience these effects are unlikely to materially alter the course of the national economy beyond the next couple of quarters.”

 Meanwhile, existing home sales fell for the fourth time in five months in August.  Crude oil prices rose to a four-month high to settle at more than $50 a barrel.

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