US stocks hit record highs as Fed sees no rate hikes

Markets were mixed on Wednesday.

The S&P 500 rose 0.3 percent to a record high but the STOXX Europe 600 fell 0.4 percent. Asian markets were little changed.

US stocks reversed early losses after the Federal Reserve indicated that it sees no interest rate hikes through 2023.

The Fed said in a statement after its monetary policy meeting on Wednesday that “indicators of economic activity and employment have turned up recently” whille inflation “continues to run below 2 percent”.

“It sounds like the perfect scenario for investors,” said Michael Arone, chief investment strategist at State Street Global Advisors. “Monetary policy is going to remain largely accommodative almost regardless of what happens with interest rates, inflation and asset prices.”

Anu Gaggar, senior global investment analyst at Commonwealth Financial Network, said: “This is like a Goldilocks market – strong economic growth, moderately higher inflation, rebounding earnings, and very easy monetary conditions.”