U.S. Stocks Get Caught Between Yellen and the Shutdown
NEW YORK ( TheStreet) -- U.S. stocks were little changed Wednesday as President Obama's nomination of Janet Yellen to lead the Federal Reserve offset fears of a federal default amid the ongoing debt-ceiling debate in Washington.
Yellen's all but assured ascension to the Fed's top post signaled to investors that its sweeping stimulus program is likely to remain in place. Yet, lawmakers in Washington appeared to be making little progress toward a resolution that could resolve the government's partial shutdown, now in its eighth day.
The S&P 500 rose 0.06% to close at 1,656.42.
Yellen, the bank's current vice-chair is expected to continue to push to continue the Fed's bond-buying stimulus measures while focusing on job creation as much or more than inflation.
Minutes from the Fed's September meeting, which printed Wednesday, shows that the decision not to taper just yet was "a relatively close call," among the officials. "With financial markets appearing to expect a reduction in purchases at this meeting, concerns were raised about the effectiveness of FOMC communications if the Committee did not take that step," the minutes said.
As for the government shutdown that began Oct. 1, Obama said he is willing to negotiate with Republican leaders. Obama said he would begin talks if Republicans move to promptly end the shutdown and raise the debt ceiling, even if it was only for a temporary four to six weeks.
Prior to the Yellen announcement, the Fed is scheduled to release a summary of its September policy meeting, a gathering at which policymakers maintained the current pace of their bond-buying program amid concerns that current fiscal policy is restraining economic growth. The minutes will be released at 2 p.m.
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