U.S. stocks fell the most in two months on Wednesday after the Federal Reserve raised interest rates by a quarter point, and signaled hikes could come next year at a faster pace than some expected. Bobbi Rebell reports.
U.S. stocks closed in the red on Wednesday after the Fed raised interest rates by a quarter of a point. The S&P posting its biggest percentage drop since October 11th. The Fed also signaled a faster pace of increases in 2017. Lakshman Achuthan of the Economic Cycle Research Institute or ECRI: SOUNDBITE: LAKSHMAN ACHUTHAN, CHIEF OPERATIONS OFFICER, ECONOMIC CYCLE RESEARCH INSTITUTE, (ENGLISH) SAYING: "Looking forward, I think, this was a welcome move. And a warranted move. What remains to be seen is if inflation starts to run away a bit. And we don't know the answer to that yet. The future inflation gauge at an eighth and a half year high is raising eyebrows. " U.S. retail sales barely rose in November, and industrial production recorded its biggest drop in eight months. Oil prices fell more than three percent on renewed concerns about an oil glut sparked by rising U.S. crude inventories in storage Auto stocks lower. A Chinese official warned, according to the official China Daily newspaper, that the government could slap a penalty on an unnamed U.S. automaker for what they call monopolistic behavior. In Europe: shares retreated from an 11-month high, with the major country indexes closing lower.