Stocks Soar After Fed Announces Interest Rates Won't Increase Until Job Markets Improve - East Idaho News
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Stocks Soar After Fed Announces Interest Rates Won’t Increase Until Job Markets Improve

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Getty WallStreet?  SQUARESPACE CACHEVERSION=1426710564486iStock/Thinkstock(NEW YORK) — Wall Street got off to a rough start to Wednesday’s trading session, but after hearing Federal Reserve Chair Janet Yellen say that interest rates were unlikely to be increased at the Fed’s April meeting, the markets surged back.

The Dow Jones Industrial Average, down nearly 100 points before the Fed’s statement, closed the day at 18,076.19, up 227.11 for the day.

Graphs showing the Nasdaq in response to the announcement show a near-vertical climb at about 2 p.m. The Nasdaq closed up 45.40 at 4,982.83. The S&P 500 gained 25.14 on Wednesday, finishing the session just short of 2,100 at 2,099.42.

At a press conference Wednesday, Yellen said that a rate hike could come after April’s meeting, but that it also couldn’t be ruled out as soon as June. Of note, the Fed dropped the word “patient” from its statement, after months of saying that it would be patient in choosing when to increase interest rates.

“As we noted in our statement, the decision to raise the target range will depend on our assessment of realized and expected progress toward our objectives of maximum employment and 2% inflation,” Yellen added.

Rates have been near zero since 2008 in an effort to help the economy climb out of a devastating financial crisis and recession.


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