Growth stocks and related exchange traded funds advanced after the Federal Reserve indicated the economy was strengthening at a steady enough pace that it could begin cutting back on accommodative measures.

U.S. markets have been pushing toward record highs on strong corporate earnings, the economic recovery, and ongoing support from the Fed’s easy monetary policies. However, the optimism was tempered in sessions due to concerns over the Covid-19 Delta variant, China’s regulatory crackdown on its rising technology giants, and the risk of persistently high inflation, the Wall Street Journal reports.

“I’m not sure the Fed needs to change its course right now given the Delta variant is spiking around the country,” Jack Ablin, founding partner, and chief investment officer of Cresset Capital Management, told Reuters.

“Any new data is just every excuse for the Fed to sit on its hands and take a wait-and-see attitude.”

After its two-day meeting, Fed officials left its monetary policy unchanged and stated that the economy has progressed toward employment and inflation goals. Consequently, the central bank could assess its bond purchasing programs in the coming months after previously stating that the purchases would continue until there is “substantial further progress” on the economic recovery.

“If Powell is being honest, every economist has been surprised about how high inflation has been, and there is no sign of it coming off just yet,” Brian O’Reilly, Head of Market Strategy for Mediolanum International Funds, told the WSJ. “But they are going to look through this. There will be no change, but they are at the stage where they are starting to talk about talking about tapering.”

Investors interested in the growth style can turn to targeted strategies like the American Century Focused Dynamic Growth ETF (FDG), which is designed to invest in early-stage, high-growth companies. FDG is a high-conviction strategy designed to invest in early-stage, rapid-growth companies with a competitive advantage and high profitability, growth, and scalability.

Additionally, investors can look to the American Century STOXX U.S. Quality Growth ETF (NYSEArca: QGRO). QGRO’s stock selection process is broken down into high-growth stocks based on sales, earnings, cash flow, and operating income, along with stable-growth stocks based on growth, profitability, and valuation metrics.

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