Stocks hit fresh all-time highs as the Federal Reserve did little to alter Wall Street’s bets that interest rates will drop at least twice in 2024 — even after the central bank’s more conservative outlook.
The S&P 500 topped 5,400 for the first time, with Wednesday marking the 20-month anniversary of the bull market. While Treasury yields did pare their slide after the central bank decision, Fed swaps continued to fully price in quarter-point rate cuts in November and December.
U.S. policymakers penciled in just one rate reduction cut this year and they now see four cuts in 2025. The Fed adjusted language in its statement, noting there has been “modest further progress toward the committee’s 2 per cent inflation objective.” Previously, the statement pointed to a “lack” of further progress.
In the run-up to the Fed decision, data showed the core consumer price index cooled to the slowest pace in more than three…
