BUSINESS NEWS MAY 27TH, 2016
Stocks posted moderate gains Friday and a winning week as Federal Reserve chair Janet Yellen said that it is “appropriate” for the Fed to “gradually and cautiously” increase interest rates “in the coming months” if the economy and labor market continue to improve.The Dow Jones industrial average, which kicked off the trading session up 55 points in May, ended up 45 points on the day, a 0.3% bump. The Standard & Poor's 500 stock index rose 0.4% and the Nasdaq composite gained 0.7%.Yellen’s comments reiterated what the Fed minutes on May 18 and commentary from other Fed members since then have been stressing: a rate hike is coming, perhaps as early as June, if the early rebound early in the second quarter continues.
YELLEN: RATE HIKE "APPROPRIATE" IN FUTURE
Federal Reserve Chair Janet Yellen said Friday the central bank is likely to raise interest rates in coming months if the economy continues to improve as expected. Yellen did not say whether Fed policymakers are leaning toward hiking the central bank's benchmark rate in June or July, but she said the economy is picking up after a weak first quarter, leaving a move in the next two months on the table.Stocks in the U.S. initially pared gains after Yellen's remarks, but later staged a rebound to close the day with the Dow Jones industrial average rising nearly 45 points to close at 17,873.22.
VERIZON, UNIONS REACH FOUR-YEAR LABOR CONTRACT
Verizon and striking unions have reached a four-year contract and employees will likely return to work next week, labor and union officials say.Nearly 40,000 Verizon employees who are members of the International Brotherhood of Electrical Workers and Communications Workers of America went on strike more than six weeks ago.“Today, I am pleased to announce that the parties have reached an agreement in principle on a four-year contract, resolving the open issues in the ongoing labor dispute between Verizon’s workers, unions, and management," said Labor SecretaryThomas Perez. He urged Verizon management and union officials to begin meeting in Washington, D.C., nearly two weeks ago.
MODI: IT SHOULDN'T BE OF MEDIA'S INTEREST
RBI governor Raghuram Rajan is set to be re-appointed soon, but India Prime Minister Narendra Modi said that his appointment is not the media’s business. Rajan has been the subject of an onslaught of character attacks. Modi’s comments were the first on the matter since they had started. Rajan is a very outspoken character, not afraid to let people know his views on certain matters. The leader of the BJP has accused Rajan of of trying to divide the party, and that he is part of a group that is trying to cement America’s position as the top global economy. Finance minister Arun Jaitley has been one of Rajan’s few defenders, saying that any personal comments about the RBI governor should not be made.