After the Federal Reserve’s policy announcement, U.S. stock markets edged lower again. The Dow Jones Industrial Average fell 1.6 % to 46,225 points, the broader S&P 500 dropped 1.4 % to 6,625, and the technology‑heavy Nasdaq slid 1.4 % to 24,425.
The Fed had left its policy rate unchanged, but it signalled that no cuts are expected in the near term and warned that the impact of the Middle East conflict on the U.S. economy remains uncertain. The board is closely monitoring the associated risks.
Fed officials now project a 2.7 % inflation rate for the rest of the year, up from 2.4 % in December. Chair Jerome Powell said the higher inflation outlook reflects not only higher oil prices but also a mix of factors-including tariff effects-that continue to pose inflationary risk.
Thomas Gitzel of VP Bank described the Fed’s stance as “hawkish” and noted that Powell will finish his term in May without pursuing further rate cuts.
Brent crude rose sharply, reaching $109.80 a barrel at 21:00 CET-a 6.2 % increase from the previous day’s close.
On the currency front, the euro weakened against the dollar: one euro was worth $1.1461, meaning one dollar could be exchanged for €0.8725.
Gold fell 3.6 % to $4,821 per ounce, which equals €135.24 per gram.