by winston » Fri Apr 09, 2021 8:10 am
What the Fed's Latest Decision Means for the Market
by Louis Navellier
The Federal Open Market Committee (FOMC) of the Federal Reserve is keeping short-term borrowing interest rates near zero and will carry on its $120 billion monthly minimum bond purchasing program.
In minutes released Wednesday from the committee’s March 16-17 meetings, the Fed said it would maintain its rate of asset purchases and keep interest rates low until they believe the economy no longer needs the support.
The committee also raised its median GDP growth forecast for 2021 to an eye-popping 6.5%, up from 4.2% in December.
It also said the unemployment rate could fall to 4.5% by the end of the year, while inflation could rise to 2.2%, which is just higher than the Fed’s overall inflation goal of 2%.
Source: Investor Place
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