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Why the Fed Is What Investors Need to Be Looking At

The Fed's moves can shape investing strategies, so that's what you need to be looking at.<br>

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Why the Fed Is What Investors Need to Be Looking At

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  1. Why the Fed Is What Investors Need To Be Looking At The Fed’s moves can shape investing strategies, so that’s what you need to be looking at. After significant volatility that has been the norm recently, Wednesday, April 29, witnessed major gains following Fed Chairman Jerome Powell’s reassuring resolve to launch a campaign to compensate for the coronavirus fallout. Powell claimed that this will have a significant influence on the economy in general, particularly near-term inflation and employment opportunities. www.tradezero.co+1.954.944.3885

  2. Fed Keeps Interest Rates Unchanged, FOMC Reassures By a unanimous vote, the Fed kept interest rates unchanged. The benchmark rate continues to be in the region of 0% to 0.25% till the rampaging spread of Covid-19 ends along with its disabling impact on the economy. According to a statement by the Federal Open Market Committee (FOMC), this target range will be maintained till the Committee is convinced of the economy’s potential to attain its maximum performance. Fed’s Decision Not to Change Rates Boosts the Market Sure enough, the news did wonders for the market. The Dow Jones Industrial Average (DJIA) rose to 24,633.86, after closing the previous day at 24,101.55. It was a 2.2% gain of 532.31 points. The S&P 500 (SPX) gained 76.12 points to close at 2,939.51 from 2,863.39 the previous day, when it suffered a loss of 15.09 points. The Nasdaq Composite ($COMP) gained 3.6% to end at 8.914.71 after closing 8,607.73 the previous day when it underwent a 122.43-point loss. The smaller companies’ index, the Russell 2000 Index (RUT), had a 4.8% rise to 1,360.46. Other Economy Stimulating Initiatives to Continue The Fed is also looking to continue the initiatives it has announced recently. One of these is the quantitative easing schedule. This isn’t the first time the Fed has surprised us during the pandemic. Back in late March, the Fed www.tradezero.co+1.954.944.3885

  3. announced unlimited quantitative easing after announcing the idea of buying corporate debt. This later developed into a corporate-debt guarantee scheme. The Federal Reserve just keeps surprising investors, and has always been, during this Covid-19 pandemic. And, investors believe it could have more weapons in its arsenal, which is reassuring considering it would support the economy. Powell’s statement couldn’t have come at a better time. Equally reassuring is the fact that getting started in trading can be profitable with zero commission trading. www.tradezero.co+1.954.944.3885

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