Stock Exchange of New York is growing at a record pace – BBC Russian

Stock Exchange of New York is growing at a record pace – BBC Russian

• December 19, 2014

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Dow Jones industrial average rose more than 400 points

On the New York Stock Exchange registered a record growth: the Dow Jones industrial average rose on Thursday, more than 400 points. This is a record figure for the last three years.

The share prices began to rise after the head of the US Federal Reserve (central bank) Janet Yellen announced the strengthening of the country’s economy.

She also noted that there is no need to hurry up with the rise in interest rates.

Investors feared that the Fed will raise its short-term interest rates, which since the financial crisis of 2008 are at the lowest level, sometimes reaching 0%.

However, due to the fact that the US economy began to emerge from the crisis, the Federal Reserve gradually began to review the measures taken to support the economy.

In October, the Fed stopped the program bond purchases, known as “quantitative easing”, which led investors to the conclusion that the interest rates on federal funds may soon be raised.

The Fed chief Janet Yellen said, however, that the question of raising rates, likely will not be considered during the the next two meetings of the Board of the Federal Reserve.

This means that if rates rise, it will not happen before April 2015.

However, most observers point out that in previous statements the Fed said that rates will not be raised for a “considerable period”, and believe that they will rise until mid-2015.

Analysts also point out that the Fed deliberately uses vague phrases on the timing of rate hikes to give currently the greatest freedom of action depending on the current state of the US economy.