Canadian stocks remained largely flat on Wednesday after the U.S. Federal Reserve decided to hold interest rates steady, citing solid economic growth but persistent inflation concerns. The S&P/TSX Composite Index advanced by 18 points for the day to settle at 26,560.
Despite buying in healthcare, financials, and technology stocks, weakness in commodity-linked sectors such as energy and materials offset broader gains, keeping the TSX largely range-bound.
The U.S. Fed remains cautious
During his press conference, Federal Reserve Chair Jerome Powell noted that the U.S. economy remains strong, but inflation is still running higher than the central bank’s target, partly because of recent tariff hikes.
Nevertheless, according to the Fed’s latest economic projections, policymakers still expect the federal funds rate to fall to around 3.9% by year-end, indicating there might be room for at least one rate cut in the coming months. This…
