Stock indexes are closing higher Wednesday after the Federal Reserve said it expects its key interest rate to remain near zero through 2023.
The central bank’s commitment to keeping rates at rock bottom lows comes even as it forecasts the economy will accelerate this year. Wall Street has been anxious about the potential for higher inflation and has been looking for signs that the central bank shares investors’ concerns.
The S&P 500 index finished 0.3% higher. The Dow Jones Industrial Average rose 0.6% and the technology-heavy Nasdaq gained 0.4%. The 10-year Treasury yield hit 1.65%, the highest since January 2020.