Strong Reports Stifle Market, Hint at Future Fed Rate Hikes

Summary

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NEW YORK - Wall Street stalled Thursday after a battery of reports indicated the economy is stronger than expected and raised concerns that the Federal Reserve might be more aggressive about interest rates next year.

There has been speculation in the market that Fed policy-makers might be ready to cut interest rates because the economy appeared to be moderating on course. However, investors believed that better- than-expected reports that measured existing home sales, consumer sentiment, and manufacturing in the Midwest lessened the possibility of a cut.

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Strong Reports Stifle Market, Hint at Future Fed Rate Hikes

Moreover, the trio of reports suggested to some that central bankers - who have left interest rates unchanged during their last four meetings - might even have to implement a rate hike on further signs the economy is growing too f...

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