Wall Street saw an uneven day of trading Wednesday despite the announcement of continued accommodative policy from the Federal Reserve.
The Fed indicated that it was unlikely to raise rates above current near-zero levels until at least the end of 2023, which investors initially cheered. It also effectively set two conditions – “maximum employment” as well that has inflation that “has risen to 2 percent and is on track to moderately exceed 2 percent for some time” – that could lead to difficult compromises down the road.
“In the period ahead, the Fed will face two choices,” says Rick Rieder, BlackRock’s chief investment officer of global fixed income. “It could either: 1) keep monetary policy easy for years in hopes of hitting its elusive 2% inflation