| Associated Press | Stocks are selling off in early trading after the Federal Reserve says it is raising the interest rate it charges banks for emergency loans. The Fed says its action should not be seen as a sign that it will soon raise rates for consumers and businesses.
But the stock market, which tends to trade on expectations for what the economy will be like in six to nine months, seems to be anticipating that rates will rise. |
See also • MarksJarvis: Fed getting economy ready to fly |
The rate hike offset relief over a tame inflation report on Friday. The Consumer Price index rose by a smaller-than-expected 0.2 percent last month.
The Dow Jones industrial average is down 25.84, or 0.3 percent, at 10,367.06. The Standard & Poor’s 500 index is down 3.52, or 0.3 percent, at 1,103.23, while the Nasdaq composite index is down 7.69, or 0.3 percent, at 2,234.02.
