"We do expect that we'll begin to make faster progress on both labor markets and inflation as the year goes on because of the progress with the vaccines, because of the fiscal support that we're getting," Powell said at a news conference. "We expect that to happen, but we'll have to see it first,” he said.
The S&P 500 closed up 0.3% and the Nasdaq ended the day 0.4% higher.
“It sounds like the perfect scenario for investors and the outlook and you’re seeing market response to this very optimistic view,” said Michael Arone, chief investment strategist at State Street Global Advisors. “Monetary policy is going to remain largely accommodative almost regardless of what happens with interest rates, inflation and asset prices.”
The 10-year Treasury yield remained higher after the Fed’s statement. Earlier in the session, the benchmark rate jumped to 1.689%, hitting it highest level since late January 2020.
