At its meeting ending on March 19, the US Federal Reserve (Fed) decided to keep interest rates unchanged at 4.25-4.50%, as expected by the market. The bank lowered its economic growth forecast for 2025 and raised its inflation forecast.
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| The Fed kept interest rates unchanged. (Source: NBC News) |
Fed Chairman Jerome Powell said the current situation is increasingly uncertain, partly due to tariff policies. However, he remains confident in the US economic outlook, based on a number of economic indicators that remain strong, despite declining consumer sentiment.
"The US economy remains strong and the labor market remains solid, although inflation remains high and there are many uncertainties," Mr. Jerome Powell emphasized.
After the above information, Wall Street stocks increased simultaneously.
At the close of trading on March 19, the Dow Jones industrial index rose 383.32 points (0.92%) to 41,964.63 points; the S&P 500 index rose 60.63 points (1.08%) to 5,675.29 points and the Nasdaq Composite technology index rose 246.67 points (1.41%) to 17,750.79 points.
Analyst Patrick O'Hare of market analysis firm Briefing.com assessed that the market reacted positively to Chairman Powell's optimistic views.
The decline in bond yields, he said, helped bolster speculation of falling mortgage rates. The yield on the benchmark 10-year Treasury note fell 3.3 basis points to 4.249%.
Meanwhile, Matthias Scheiber, head of multi-asset solutions at investment manager Allspring Global Investments, said the Fed has taken a cautious, wait-and-see approach amid concerns about the impact of tariffs on US growth and inflation.
He forecasts the next Fed rate cut could be May 2025 or later, and the market is expecting two rate cuts in 2025.
Source: https://baoquocte.vn/fed-ra-quyet-dinh-moi-ve-lai-suat-khang-dinh-kinh-te-my-manh-me-chung-khoan-phu-sac-xanh-308199.html
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