The Federal reserve decided to keep the interest rate unchanged on Wednesday at 0-0.25%, the policymakers said the rate will stay there until economy has weathered recent events and is on track to achieve employment and inflation goals.
With the on going pandemic posing considerable risk to economic outlook over the medium term the fed vowed to use the "full range" of its tools in order to aid the economy. They will continue buying Treasury, agency residential and commercial mortgage-backed securities in amounts needed to support market functioning and effective monetary policy transmission.
This has seen the three main indexes have recover over 30% from their mid-March lows, boosted by aggressive stimulus efforts and, more recently, on hopes of an economic revival as many U.S. states begin to relax lockdown measures.
Investors shrugged off data that showed the U.S. economy contracted in the first quarter at its sharpest pace since the Great Recession, ending the longest expansion in history. The S&P index recorded four new 52-week highs and no new low, while the Nasdaq recorded 33 new highs and no new low.
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