NEW YORK — Wall Street stocks slumped Wednesday after the Federal Reserve lifted interest rates, sending major indices to fresh 2018 lows, even as the US central bank signaled it expects slower rate increases next year. But the second part of the session was "governed by a sense of disappointment that (the Fed), and Fed Chair (Jerome) Powell, didn't deliver on the market's wishes." But the Fed now projects only two interest rate increases, down from three previously, as it trimmed its forecast for US growth and inflation. "If he downgrades his forecast, that creates concerns that the Fed knows something the market doesn't or it confirms fears. If he stays put, then market participants worry that the Fed is going to tighten too much."

Source: Philippine Star December 20, 2018 02:15 UTC