The Federal Reserve expects to hold interest rates near zero through 2023 to bolster U.S. economy. FOX Business’ Edward Lawrence with more.
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The major futures indexes are suggesting a decline of 1.0%, or more than 200 Dow points.
The U.S. Federal Reserve indicated on Wednesday its benchmark interest rate will stay close to zero at least through 2023 but announced no additional stimulus plans.
Chairman Jerome Powell promised the Fed “we will not lose sight of the millions of Americans that remain out of work” but gave no indication of new stimulus.
Following the Fed comments, Wall Street’s benchmark S&P 500 index closed down 0.5%. The Dow Jones Industrial average rose 0.1%, to 28,032.38. The Nasdaq composite lost 1.3% to 11,050.47.
On Thursday, the Labor Department is expected to say the number of claims for unemployment benefits declined to 850 thousand last week, down 34,000 from the previous week’s tally of 884,000 and the lowest reading since March 14, right before the coronavirus lockdowns.
The Commerce Department is expected to say that the number of new homes being built slipped 1.2% in August to a seasonally adjusted annual rate of 1.478 million. For context, housing starts plummeted to a 5-year low of 934,000 at the pandemic low in April. Permits for future construction are anticipated to increase 2.5% to 1.52 million.
Finally, the Philly Fed is out with its September