Reported 9 months ago
Traders at the NY Stock Exchange closely watched the Federal Reserve's interest rate decision on June 12, which ended with rates held steady between 5.25% and 5.5%. Despite mentioning progress in recent inflation easing, the Fed increased its inflation expectations for the year and reduced expected rate cuts from three to one. The stock market rally slightly slowed down, although major indices hit new highs. The Dow Jones Industrial Average briefly returned to flat post-rate decision, closing down 35 points or 0.091%. The S&P 500 closed up 0.85% to 54212 points, setting a new record. The Nasdaq Composite Index also hit a historical high at 17608 points. With inflation forecast raised, the Fed may delay and reduce rate cuts, contrary to earlier expectations of multiple cuts. Some investors now expect only one cut this year instead of the anticipated three. The Fed's updated 'dot plot' forecasts only one cut of 0.25%, leading some to doubt if any cuts will occur in 2019.
Source: YAHOO