The FED had their much-anticipated meeting Wednesday to discuss interest rates. Following the meeting, officials made the announcement that they would continue to keep national rates at their near zero low until the U.S. economy manages to better recover from the coronavirus pandemic.
As a result of this decision, investors saw the DOW end the day Wednesday at a record setting 33000.
FED Chair Jerome Powell said in a following press conference that he plans to “continue to provide the economy the support that it needs for as long as it takes.”
As a follow up, however, Powell also stated that “the economy is a long way from our employment and inflation goals, and it is likely to take some time for substantial further progress to be achieved.”
In addition to Powell’s statements, other FED officials stated that they expect the current, ultra-low interest rates to continue through 2023.
Despite this hopeful news, however, some investors still find themselves uneasy when approaching this market. Still concerned that this upward market trend will come to an abrupt end as the government stimulus that has maintained it begins to subside.
While it’s true that we did see markets react positively to Wednesday’s announcement, FED officials continue to warn that we still have a long way to go before we reach full economic recovery.
Several investors continue to look ahead, however. Many hopeful of a coming economic boost as most Americans wake up to a hefty $1,400 stimulus check in their bank accounts. Experts anticipate the stimulus deposit to boost national spending in the coming days which would, of course, then be reflected in our overall economic health.
But is the handing out of another stimulus a permanent fix or just another band-aid on an already bleeding economy?
Despite the hopeful news coming out of the FED meeting Wednesday, there are still many questions that have yet to be answered. That’s why we invite you to join DTI Founder and Head Trader Tom Busby below as he sits down to fill you in on his most recent take on today’s markets and how he plans to maneuver his way through them.
Find out the best plan of action for you and your investments by joining Tom now…
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