Fed delivers its first hike in 3 years. Plus, what's moving Starbucks and GE Vernova
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Every weekday, the CNBC Investing Club with Jim Cramer releases the Homestretch - an actionable afternoon update, just in time for the last hour of trading on Wall Street. The S & P 500 fell after the Federal Reserve raised interest rates by 25 basis points, the first hike in overnight borrowing costs in more than three years. The decision was unanimous. The Fed said in its policy statement that the rate hike "will support a timelier return" to the central bank's policymaking committee's 2% inflation target. The nation's inflation rate has been running hotter than 2% for many years. Based on the updated "dot plots" in the Fed's quarterly Summary of Economic Projections, most central bankers expect one more rate increase before the end of the year. During his post-meeting news conference, Fed Chairman Kevin Warsh said that "inflation is too high and has been for too long," adding that Wednesday's rate hike reflects the central bank's commitment to reducing inflation. Warsh said that the U.S. economy appears to be strengthening but faces headwinds from geopolitical uncertainty. Starbucks is considering selling a majority stake in its Japan operations in a deal that would value the business at about $3 billion, according to a report from Reuters. This is not a new story. We first heard this back in June from Bloomberg. What's different now is that Bloomberg reported the...
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