Stock markets are sideways and holding onto gains as they digest the information contained in the release of the Federal Reserve on Wednesday from its June 9-10 meeting, during which it held interest rates constant and notes it expects a more relaxed monetary policy to continue until the economy stabilizes.
The Dow Jones Industrial Average is off slightly amid the news, down 0.14%, while the S&P 500 gained 0.46% and the Nasdaq Composite climbed 79%, after staging larger gains earlier in the session. Stocks finished the quarter strong on Tuesday with a healthy run-up into the close before pulling back in the extended trading session and overnight futures markets.
“In particular, most participants commented that the Committee should communicate a more explicit form of forward guidance for the path of the federal funds rate and provide more clarity regarding purchases of Treasury securities and agency [mortgage-backed securities] as more information about the trajectory of the economy becomes available,” the minutes said.
Officials also had an in-depth discussion about capping bond yields and strengthening its guidance about where the policy will be set moving forward.
The notes also touched on the recent, growing political and civil unrest over racial injustice.
“I want to acknowledge the tragic events that have again put a spotlight on the pain of racial injustice in this country. The Federal Reserve serves the entire nation. We operate in, and are part of, many of the communities across the country where Americans are grappling with and expressing themselves on issues of racial equality,” the meeting notes said.
“I speak for my colleagues throughout the Federal Reserve System when I say that there is no place at the Federal Reserve for racism, and there should be no place for it in our society. Everyone deserves the opportunity to participate fully in our society and in our economy,” Chair Powell said.
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