U.S. stocks rallied on Wednesday after the Federal Reserve suggested a less aggressive timeline for raising interest rates even as it opened the door for the first hike in almost a decade. The Fed has come under lobbying from other countries not to raise rates. The Fed will comply for now, but when the Dow breaks out over the 20,000 level, the Fed will start to abandon international policy objectives shifting to domestic. The Fed NEEDS to raise rates for unless they do, they realize they have no room to lower rates for a stimulus in the future. The stocks rallied on the traditional view of interest rates and that will dominate the trend until after the ECM turns.
The Fed dropped its pledge to be “patient” in deciding when to begin raising rates, but it cut its interest-rate projections over the next few years and downgraded its outlook for the U.S. economy. The dollar plunged Wednesday, falling 3 percent against the euro, after the Federal Reserve signaled it could begin raising interest rates as early as June but slashed rate projections and downgraded its outlook for the economy.
