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S&P 500 Declines Following Fed Signals

The S&P 500 fell on Thursday after the Federal Reserve decided not to raise interest rates at its most recent meeting, although it did hint that two more rate increases could possibly happen later this year.

The Federal Open Market Committee will use the six weeks before its next meeting to “take into account the cumulative tightening of monetary policy,” Fed Chair Jerome Powell stated during a post-meeting press conference. He further stated that no decision had been taken regarding the policy change for July.

According to Chris Zaccarelli, chief investment officer for Independent Advisor Alliance, “the Fed shocked markets [Wednesday] – not by raising rates (because they kept them constant as expected), but because they indicated much more hawkishness than expected in their language and in their forward economic projections.

Source (CNBC)

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