The S&P 500 rose by 0.5 per cent and is coming off a record high after being largely flat in morning trade before the announcement. The Dow Jones was up 0.5 per cent, or less than 0.1 per cent and the Nasdaq composite was up 0.6 per cent. The Australian sharemarket is set to rise, with futures at 5.43am AEDT pointing to a gain of 29 points, or 0.4 per cent, at the open. The ASX
The fear on Wall Street was that the Fed would trim the number of forecasted cuts because of a string of recent reports that showed inflation remaining hotter than expected. To grind down inflation, the Fed has been keeping its main interest rate at its highest level since 2001. High rates slow the overall economy by making borrowing more expensive and by hurting prices for investments.
Fed officials upgraded their forecasts for the US economy’s growth this year, and continued strength could translate into higher profits for companies, which in turn would help their stock prices.“They probably figure they don’t need to cause a recession to tame inflation and that’s a good thing,” said Brian Jacobsen, chief economist at Annex Wealth Management.
Stocks have been rallying to records amid hopes that the Fed is moving closer to cutting interest rates, which would relieve pressure on the economy and financial system. Wall Street is betting that the central bank will begin cutting its benchmark interest rate at its meeting in June.
Source: News Formal (newsformal.com)
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: FinancialReview - 🏆 2. / 90 Read more »
Source: FinancialReview - 🏆 2. / 90 Read more »
Source: FinancialReview - 🏆 2. / 90 Read more »
Source: FinancialReview - 🏆 2. / 90 Read more »
Source: FinancialReview - 🏆 2. / 90 Read more »
Source: FinancialReview - 🏆 2. / 90 Read more »