The US markets closed largely unchanged on Wednesday after the American federal reserve has maintained unchanged interest rates.
The central bank has chosen to maintain its reference interest rate at its current level, President Jerome Powell indicating a cautious approach.
Powell revealed that the Fed would assess the impact of the recently implemented prices of President Donald Trump on inflation before considering additional adjustments.
The S&P 500 fell 0.03% to 5,980.86. The Dow Jones fell 44 points to 42,171.66. The Nasdaq, heavy in technology, closed 0.13% to 19,546.27.
Coinbase, Wells Fargo and Intel were among the best winners in the S&P 500 Wednesday.
Marvell Technology Inc. was a highest winner in Nasdaq.
Coinbase won 17% during the session with the Circle of USDC issuers after the US Senate adopted the Historical Engineering Act, which provides a framework allowing private entities to publish stablescoins.
Intel won after announcing additions to the leadership group, including the engineering division.
The company in difficulty aims to make a turnaround in its chip offers AI to compete with the market leader Nvidia.
Marvell Stock joined 7% after announcing collaboration with Semiconductor Empower on the development of integrated power solutions for its personalized silicon platforms.
Mastercard and Visa were among the best losers in the S&P 500.
The two actions have dropped by more than 5%, because the Act on Engineering gives the companies that plan to issue stablecoins.
Amazon and Walmart would have planned to introduce their own stablecoins.
The federal reserve holds stable rates in the midst of pricing concerns
Copy the link to the section
Wednesday, the key rate of the Fed was kept unchanged in a target range of 4.25% to 4.5%, a level he has held since December.
The central bank’s update presented investors with a mixed perspective.
Although anticipated decision -makers are still providing potential rate drops later this year, they simultaneously suggested a risk of stagflation.
The projections of political decision -makers have indicated two reductions in additional quarter prices for the current year.
However, they revised economic growth forecasts in 2025 to a modest of 1.4% and simultaneously increased the prospects of central inflation to 3.1%.
At a press conference that followed the decision, Powell admitted that the prices “began to see certain effects” on inflation.
Despite this, he said that political decision -makers are “well placed to wait” before making any change in interest rates.
Earlier Wednesday, US President Donald Trump again criticized Powell and other federal reserve officials for their reluctance to facilitate monetary policy.
President Trump said the rate of federal funds should be at least two lower percentage points, characterizing Powell as “stupid” so as not to plead for a committee decision to reduce rates.
The federal reserve officials would have hesitated to adjust the rates, expressing the concerns that the prices implemented by President Trump this year could lead to an increase in inflation in the coming months.
To date, various price indicators have not shown a significant impact of these tasks.
The delayed effect of prices, combined with softening the demand of consumers and an accumulation of inventories preceding the announcement of the “Liberation Day” of April 2, has collectively contributed to the attenuation of their overall impact.
