North American stock markets Sell Off Due To Fed US Bank Comments

North American stock markets backed off Wednesday amid worries that the U.S. Federal Reserve could end up raising interest rates as soon as the spring of next year.

The S&P/TSX composite index lost 34.94 points to 14,334.04 as the Fed moved to clarified its guidance on when it might raise short-term interest rates at the end of its two-day policy meeting.

The Fed reaffirmed its plan to keep short-term rates low. But it no longer mentions a specific unemployment rate that might lead it to eventually raise rates.

Instead, it will monitor a wide range of economic data before approving any rate increase.

Later, Fed chair Janet Yellen signalled that the central bank could begin raising short-term rates six months after it halts its bond purchases around year’s end.

The greenback and U.S. Treasury yields appreciated sharply after the Fed announcement while losses for the Canadian dollar deepened, with the loonie closing down 0.86 of a cent (U.S.) at 88.93 cents.

Billionaire Buffett gets 15% hike in compensation

OMAHA— Warren Buffett’s compensation from Berkshire Hathaway Inc. rose 15 per cent last year to $485,606, although the billionaire’s salary remained $100,000.

Buffett leads the Omaha, Neb., based Berkshire Hathaway conglomerate that owns more than 80 subsidiaries in a variety of industries, including insurance, utilities, railroads, retail and manufacturing.

It also has major investments in such companies as American Express, Coca-Cola Co. and Wells Fargo & Co.

Last year it bought a big stake in H.J. Heinz, the ketchup and soup maker.

The increase came in “other compensation,” which includes company-paid costs for Buffett’s personal and home security.

As usual, Buffett reimbursed Berkshire $50,000 for personal costs such as postage and phone calls.

Buffett, 83, is the Omaha, Neb., company’s chairman and chief executive.

Most of Buffett’s wealth comes from his Berkshire stock. The share price rose 32 per cent in 2013.

The salaries of Buffett and vicechairman Charles Munger have been set at $100,000 for more than 25 years, and Buffett doesn’t want or expect a raise, the conglomerate said in a regulatory filing Friday.

Unlike many other companies, Berkshire Hathaway doesn’t grant stock options to executives.