The Fed’s announcement that the US economy is not doing as well as what was projected three months earlier sent stocks dipping.
The Dow dropped 0.62% or 52.811 points to close at 8,422.04. S&P 500 fell 0.51% or 4.66 points ending the session to 903.47.The Nasdaq composite fell 6.70 points or 0.39 percent to 1,727.84 at Wednesday’s close.
The Fed forecasts that unemployment will continue to rise to a 9.2% to 9.6% range this year. Initial forecasts last January pegged unemployment rates at 8.5% to 8.8% but April data revealed an 8.9% rate.
24/7WallSt.com’s Jon Ogg said, “What we were looking for were comments regarding a potential exit strategy for near-zero rates on Fed funds and an outlook noting the recent increase in commodity prices potentially adding to inflation.”
