Fed Holds Rates Steady, Dow Hits Record High As Investors Bet on Earlier Rate Cuts Due to Lower Inflation Forecasts
• The Fed held rates steady as expected, sees additional 75 basis points of cuts in 2024
• Dow hit record intraday high, S&P 500 and Nasdaq also gained over 1% after decision
• Lower inflation forecasts from Fed drove expectation of earlier rate cuts
• Investors now betting on 60% chance of March 2024 rate cut
• Pfizer shares sank near 2020 lows after guidance cut showed declining COVID product sales