1. The Fed left interest rates unchanged at March meeting. 2. Inflation forecast increased to 2.7%, higher than 2.5% estimate. 3. Consumer prices, especially food, rose above the Fed's 2% target. 4. Powell suggested tariff inflation might be transitory. 5. Federal Reserve may indicate two more rate cuts this year.
Unchanged rates and potential cuts indicate a supportive environment for equities, similar to prior periods when rates were cut, boosting S&P 500 performance historically.
Fed-related news consistently influences market dynamics, especially regarding indices like the S&P 500 due to interest rates affecting corporate profit and investment.
Immediate trader sentiment may improve with the prospect of rate cuts, affecting market behavior soon.