US stocks closed lower on Wednesday as the Federal Reserve held its benchmark interest rate steady, matching expectations.
The Dow closed lower by 137 points, or 0.31%. The S&P 500 closed lower by 0.47% and the Nasdaq Composite was down 0.51%.
During his remarks to reporters, Fed Chair Jerome Powell said the central bank does “not need to be in a hurry to adjust our policy stance,” offering a signal that rates might remain steady for longer.
“No surprise the Fed is on hold. Even they have to wait and see Trump’s policies on taxes, immigration, deregulation and tariffs before they cut rates,” said Gina Bolvin, president of Bolvin Wealth Management Group, in an email.
Investors largely expected the Fed to hold rates steady.
“We view this as a non-event and that investors should have no change in market views,” said Larry Tentarelli, chief technical strategist at Blue Chip Daily Trend Report, in an email.
Traders expect a 22% chance the Fed will cut rates at its next meeting in March, compared to yesterday’s expectations of a 31% chance, according to the CME FedWatch Tool.
“On balance, this Fed meeting leans hawkish with a positive view on employment and a cautious take on inflation,” said Thomas Urano, co-chief investment officer at Sage Advisory, in an email.