BREAKING: Fed Leaves Rates Unchanged As Expected, Amid Elevated Inflation

The U.S. Federal Reserve held interest rates steady on Wednesday amid elevated inflation and a strong job market. The Federal Open Market Committee approved the following statement for release by a 10–2 vote.

This move comes as the Fed pivots its attention to inflation amid energy price fluctuations from the conflict in Iran, while the job market remains resilient.

“Inflation remains elevated,” the Fed statement said. “The accumulation of more information will help the Committee determine the policy stance appropriate to ensure a timely return of inflation to the Committee’s 2 percent goal. The Committee will deliver price stability.” 

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Governors Lisa D. Cook and Beth M. Hammack preferred to raise the target range for the federal funds rate by a quarter percentage point at this meeting. 

How Markets Reacted To The Fed 

The S&P 500 was up 0.1%, Nasdaq 100 added 0.1%, and the Dow Industrials inched 0.1% higher as of 2:35 PM ET.

The two-year yield added 4 basis points to 4.78%. The 10-year Treasury yield hovered above the 5% level.

At the time of writing, the SPDR S&P 500 ETF (SPY), which tracks the S&P 500 index, was down 0.7%, while the Invesco QQQ Trust (QQQ) added 0.1%. Retail sentiment around the S&P 500 ETF on Stocktwits shifted to ‘neutral’ from ‘bearish’.

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