At the end
of its two-day policy meeting the Fed said it will keep its interest
rate target range until it is confident the economy has weathered the
coronavirus pandemic and is on track for maximum employment and price
stability goals.
While
strategists said they found no surprising decisions after the meeting,
many pointed out that the Fed’s focus on the virus highlighted the
uncertainties it faces.
“The
Fed is putting health again front and center in its statement, which is
impactful and meaningful, especially when we’re waiting on a bipartisan
agreement on the fifth round of the CARES Act. It’s a bit ominous, to
be frank,” said Nela Richardson, investment strategist at St.
Louis-based Edward Jones.
But
Richardson noted the “commitment to do whatever it takes to get the
economy going again” and a recognition the economy has improved and
“come up from the bottom.”
And
with Fed confirmation of an extraordinarily uncertain path, “investors
can feel certain that monetary stimulus is going to remain accommodative
for the foreseeable future,” said Shawn Snyder, head of investment
strategy at Citi Personal Wealth Management.
The Dow Jones Industrial Average .DJI rose 160.29 points, or 0.61%, to 26,539.57, the S&P 500 .SPX gained 40 points, or 1.24%, to 3,258.44 and the Nasdaq Composite .IXIC added 140.85 points, or 1.35%, to 10,542.94.