Business

Wall Street edges lower after Fed raises rates

NYSE traders Image copyright Spencer Platt/Getty

US stocks edged down at the close after the US central bank raised interest rates for the second time this year.

The Federal Reserve cited continued US economic growth and job market strength.

It also said it will begin cutting holdings of bonds and other securities this year.

The Dow Jones closed up 0.22% at 21,374.56, while the wider S&P 500 index fell 0.10% to 2,437.92. The tech-heavy Nasdaq fell 0.41%, to 6,194.89.

"I don't think that there is really too much new in here outside of the fact that the Fed remains committed to the slow gradual normalisation process despite some of the weak data that we've had," said Mark Cabana, head of US short rates strategy at Bank of America Merrill Lynch in New York.

US consumer prices unexpectedly fell in May and retail sales recorded their biggest drop in 16 months.