NEW YORK, New York – Wall Street was not thrilled by Wednesday’s Federal Reserve decision to keep benchmark interest rates close to zero, despite the US economy’s recovery.
However, foreign exchange markets acted quickly to pierce the recent rise in the US dollar. The greenback fell sharply in response to the decision to keep interest rates at an all-time low.
“Amid progress on vaccinations and strong political support, indicators of economic activity and employment have been strengthened,” the Fed said in a statement after concluding its two-day policy meeting on Wednesday.
“The sectors most affected by the pandemic remain weak, but have improved,” the statement said.
“The Fed adheres to the script and assumes that rising inflation is transitory. The Fed implies changes in its summary of economic projections by declaring economic activity and employment has strengthened “said Joseph Brusuelas, chief economist at the consulting and accounting firm RSM US Xinhua quoted LLP according to LLP.
The Dow Jones industrial average plummeted 164.55 points, 0.48 percent, to close at 33,820.38 on Wednesday.
The Nasdaq Composite fell 39.19 points, 0.28%, to 14,051.93.
The Standard and Poor’s 500 fell 3.54 points or 0.08 percent to 4,183.18.
The euro jumped sharply to 1.2128, approaching Wednesday’s close in New York. The British pound crossed to 1.3946. The Japanese yen rose to 108.58, while the Swiss franc confirmed to 0.9089.
The Canadian dollar strengthened to 1.2311. The Australian dollar had a demand of 0.7794. The New Zealand dollar rose sharply to 0.7265.
In Europe, the CAC 40 in Paris rose 0.53 percent. The German Dax rose 0.28 percent. London’s FTSE 100 added 0.27 per cent.
In Asian markets, All Ordinaries Australians rose 24.50 points, up 0.34%, to 7,320.00.
In Tokyo, the Nikkei 225 rose 62.08 points or 0.21 percent to 29,053.97.
In Hong Kong, the Hang Seng advanced 129.80 points, 0.45 percent, to 29,071.34.
Shanghai Shanghai Composite rose 14.46 points, 0.42 percent, to 3,457.07.