The S&P 500 Index has dropped below the 3,400 point mark and is trading down on the day. US stocks have turned down after Federal Reserve Chairman said that the bank sees the current level of bond-buying as appropriate, conveying a message that no new support is needed.
Powell also said signaled that additional fiscal support would be helpful to assist the economy. The Fed left rates unchanged and adjusted its language on inflation to the new policy shift. Maintaining low-interest rates had already been priced in by investors.
The bank’s dot-plot pointed to a smaller contraction in 2020 but a slower growth rate in 2021.