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 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. For the technology selection index Nasdaq 100 it went up after an initial loss of 1.5 percent in the end by 0.38 percent to 13,202.38 points.
The US Federal Reserve announced after its eagerly anticipated interest rate decision that the current monetary policy course will be maintained until the Fed’s goals are achieved. The Fed is aiming for full employment and inflation of two percent in the longer term.
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 still expect key interest rates at zero for the years up to 2023. The Fed is apparently comfortable letting the economy run hot and will not intervene, said a stockbroker.
Portfolio manager Thomas Altmann of 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 specter of inflation become even more present.” / La / fba
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