U.S. ETFs Pare Down Their Losses after Fed Statement
March 17, 2021
U.S. markets and stock exchange traded funds pared some of their early-Wednesday losses after the Federal Reserve signaled its intent to maintain its near-zero interest rate policy for the foreseeable future.
On Wednesday, the
In a statement following its two-day policy meeting, the Federal Reserve outlined a rapid acceleration in U.S. economic growth and inflation this year with the negative effects of the COVID-19 pandemic dissipating, and repeated its pledge to hold target interest rates near zero for years to come, Reuters reports.
“Markets across the board are expensive today, and that is pinned on central bank support,” Hugh Gimber, a strategist at J.P. Morgan Asset Management, told the Wall Street Journal. “So this whole market is very, very sensitive to changes in central bank policy.”