The Fed pointed to an improvement in the economic outlook, as it expects economic growth in total to reach 7% this year.
With inflation rising faster than expected and the economy’s rapid recovery, the market was looking for indications about when the council might change the policies it adopted last year in the face of the economic repercussions of the pandemic, including the massive bond-buying program.
The Fed stressed its pledge to wait for “more significant progress” before starting to switch to policies less related to the pandemic and to wait more until the economy is fully opened.
It also kept interest rates near zero and said it would continue to buy $120 billion in bonds each month to support the economic recovery.
The Dow Jones Industrial Average fell 264.41 points, or 0.77%, to 34,034.92 points, the Standard & Poor’s 500 index closed down 22.83 points, or 0.54%, to 4223.76 points, and the Nasdaq Composite Index fell 33.17 points, equivalent to 0.24%, to 14039.68.