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Fed Looks Past Trump Stocks Rally, Sees Same Old Tired Expansion

  • Stock investors pin hopes on growth pickup as Fed sees 2% slog
  • Yellen & Co. avoids trying to forecast messy political process
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Goldman's Wilson Sees More Trump Volatility for Markets

If U.S. stock investors are true believers in President Donald Trump’s economic agenda, count members of the Federal Reserve as agnostics.

The S&P 500 Index rose in seven of Trump’s first eight weeks in office before suffering on Tuesday its biggest one-day setback under the new administration. Yet the Fed appears unswayed by the market’s euphoria. It unveiled forecasts last week that showed officials predict about 2 percent growth in the first three years of Trump’s presidency -- little changed from their December estimates. Also unaltered was their expectation for three interest-rate increases in 2017 and three next year.