NEW YORK (AA) – The stock market opened lower Wednesday after a Federal Reserve official hinted that the Central Bank is close to reaching its goals and indicated that a rate hike could soon come.
The Dow Jones fell 30 points to begin the day at 18,424 and the S&P 500 was down three points at 2,172. The Nasdaq decreased nine points to start the day at 5,213.
The Fed Boston President Eric Rosengren signaled in a statement earlier Wednesday that the Central Bank’s goals of stable prices and maximum sustainable employment are likely to be achieved “relatively soon.”
“Keeping interest rates low for a long time is not without risks,” he added.
After the Fed Chair Janet Yellen and Vice President Stanley Fischer’s recent comments, Rosengren’s statements were regarded as less hawkish, according to analysts. But, associating the maintenance of low rates with the risks they may bring could be perceived that a rate hike is coming soon, analysts warn.
