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NEW YORK (dpa-AFX) – The prospect of continued extremely loose monetary policy in the US calmed investors on Wall Street on Wednesday. The most important stock indices closed moderately in positive territory, and the leading index Dow Jones Industrial (Dow Jones 30 Industrial) and the market-wide S&P 500 even reached record highs.
The Dow closed 0.58 percent higher at 33,015.37 points. His record is now just under 33 058 points. The S&P 500 gained 0.29 percent to 3974.12 points. After an initial loss of 1.5 percent, the NASDAQ 100 technology selection index rose 0.38 percent to 13,202.38 points.
The current monetary policy course will be maintained until the Fed’s goals are achieved, the US Federal Reserve announced after its eagerly awaited interest rate decision. The Fed is aiming for full employment and long-term inflation of two percent.
For the current year, the Fed sees the economic development as much more positive than in December. This will also increase inflation more than previously thought. Nevertheless, the US central bankers have not changed their interest rate expectations. Accordingly, they continue to expect key interest rates to remain at zero for the years up to 2023. The Fed is apparently comfortable with the economy running really hot and will not intervene, said one Brazilian.
Portfolio manager Thomas Altmann from QC Partners commented: “The Fed underlines that it regards a stronger inflation this year as temporary. It is doing everything it can to calm the markets and not let the inflationary specter become even more prominent.” / La / fba
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