US stocks rise; gold hits record high
US stocks rose sharply on Wednesday after the Federal Reserve decided to keep interest rates unchanged. This decision came after a policy meeting and was largely anticipated by investors. However, the Fed also reduced its growth forecast for 2025 and increased its outlook for inflation. Despite this, the central bank indicated there may be two rate cuts later this year. Yields on the 10-year US Treasury note fell significantly as the Fed slowed down the reduction of its balance sheet. Analyst Patrick O'Hare from Briefing.com mentioned that the market reacted positively to comments from Fed Chair Jerome Powell, who suggested an optimistic view of the economy. He noted that lowering Treasury yields could lead to lower mortgage rates. During the meeting, Powell acknowledged the high level of uncertainty in the economy. He attributed part of the recent rise in inflation to US President Donald Trump’s tariff policies and expressed confidence in the US economic outlook despite declining consumer confidence in surveys. Meanwhile, Wall Street saw significant gains, while European markets had mixed results. In Europe, Paris gained, London remained stable, and Frankfurt faced profit-taking. In the eurozone, inflation eased to 2.3 percent in February, down from an earlier estimate. Gold prices surged to a record high, reaching over $3,045 an ounce, driven by increased geopolitical tensions. Concerns grew over potential conflicts in the Middle East after Israel escalated its attacks on Gaza. Oil prices also increased, amidst ongoing negotiations regarding a truce in the region. In a separate event, President Trump spoke with Ukrainian President Zelenskyy, suggesting that the US could manage Ukraine's nuclear power plants amid ongoing tensions with Russia. In Turkey, the lira fell to an all-time low against the dollar after opposition mayor Ekrem Imamoglu was detained during a corruption investigation. This incident led to a significant drop in the Istanbul stock exchange. The Bank of Japan also decided to keep its interest rates unchanged, citing uncertainties in trade.