May 19 Reuters Wall Streets main indexes remained lower on Wednesday after minutes from an April Federal Reserve meeting showed participants agreed the U.S. economy remained far from the central banks goals, with some eyeing a future discussion of tapering its bond buying program.
The SP 500 added to losses after the release revealed a number of Fed policymakers thought that if the economy continued rapid progress, it would become appropriate at some point in upcoming meetings to begin discussing a tapering of the Feds monthly purchases of government bonds, a policy designed to keep longterm interest rates low.
There continues to be a view and a perspective from the participants, as well as the Fed staff that these inflationary pressures that are beginning to become evident will remain transitory in their view and will likely recede as we transition into 2022, said Bill Northey, senior investment director at U.S. Bank Wealth Management in Minneapolis.
Strong inflation readings and signs of a worker shortage in recent weeks have fueled fears and roiled stock markets despite reassurances from Fed officials that the rise in prices would be temporary.
By 249PM ET, the Dow Jones Industrial Average was down 0.92 at 33,747.82 points, while the SP 500 lost 0.71 to 4,098.38. The Nasdaq Composite dropped 0.39 to 13,251.27.
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