Stocks: The Fed Rally Fades

The Dow and S&P 500 gave back most of their gains after the Fed expressed caution on inflation, but gave no signals of an imminent rate hike

Wall Street appeared to have second thoughts about its initially positive reaction to the Federal Reserve’s policy statement on Wednesday. The Fed did as expected, holding the federal funds rate target at 2.0% at the conclusion of its two-day policy meeting. The central bank expressed concern about inflation, but policymakers didn’t signal that they would be hiking rates in the immediate future.

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