US STOCKS-Wall St on track to end at a new record after Fed comments

miércoles 18 de junio de 2014 15:37 GYT

* Fed cuts 2014 growth forecast, still confident about recovery

* Amazon CEO Bezos unveils "Fire" smartphone; stock climbs

* FedEx shares hit all-time high after quarterly profit

* Dow up 0.4 pct; S&P 500 up 0.5 pct; Nasdaq up 0.3 pct (Updates prices)

By Angela Moon

NEW YORK, June 18 (Reuters) - U.S. stocks rose, with the S&P 500 on track to close at a new record, after the Federal Reserve hinted at a slightly faster pace of interest rate increases starting next year but suggested rates in the long-run would be lower than it had indicated previously.

After a two-day policy meeting, the Fed cut the 2014 economic growth forecast to a range of between 2.1 percent and 2.3 percent from around 2.9 percent.

The Fed also cut its monthly bond purchases to $35 billion a month, a reduction of $10 billion, as widely expected, in connection with its plans to wind down one of its main stimulus programs by the end of the year.

"The decision confirms that a steady-as-she-goes Federal Reserve will complete its quantitative easing exit later this year, but still have to rely more on forward policy guidance due to remaining growth and jobs challenges," said Mohamed El-Erian, chief economic adviser at Allianz SE in Newport Beach, California.   Continuación...