Fed Vows To Keep Interest Rates Near Zero Through 2023, Optimistic For Economic Outlook
March 17, 2021 – The Federal Reserve announced plans to keep interest rates near zero for the next two years, Wednesday. Fed Chairman Jerome Powell made that announcement during a meeting to discuss monetary policy for March, 2021.
During that meeting, officials also voted to keep short-term borrowing rates steady near zero.
Stocks were trading lower before that announcement, but picked up following the news, with Wall Street ending Wednesday’s session higher.
While the brief rally left some investors optimistic, there are still concerts for potential dips this week.
Rising treasury yields continue to have an impact on the markets, leaving tech stocks volatile. The 10-year treasury yield hit its highest point in more than a year during mid-day trading, at 1.69%.
This could create good opportunities for investors. During the past month, purchases of ALT currencies like Bitcoin shot up with treasury yield rates. This means keep an eye on the treasury yield, because those spikes could create a good selling opportunity. Then you can buy back in after it comes back down.
As for stocks, focus on anything that is trading above its 21-day and 50-day trading averages.
With the ramp up in vaccinations and more states rolling back restrictions, the leisure and hospitality sector could be a good buy in too.
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