Stocks Up On Fed Comments And Upgraded Growth Outlook  Image: Bigstock Stocks closed higher yesterday after the Federal Reserve's comments and higher growth forecast. The markets were mostly lower for much of the morning and early afternoon. Then, after the FOMC Announcement and Fed Chair Press Conference, stocks reversed those losses and shot up. The Fed, as expected, kept rates unchanged. And they are expected to do so thru 2023. (Although, 7 of the 18 Fed officials at the latest meeting suggested they could start lifting rates in 2022 or 2023, which was an increase from 5 officials who said that last time.) Nonetheless, the majority of policymakers expect to keep rates near zero thru 2023. They commented on inflation, and reiterated that in addition to seeing the labor market get back to full employment, they wanted to see inflation get to 2% and make sure it's "on track to moderately exceed 2% for some time." While the Fed believes inflation will tick up later this year, they still believe it will be transitory. Furthermore, they said they will do everything they can to support the economy. That includes their asset purchases. The market was also energized by the Fed's upbeat economic outlook for 2021, which they raised from 4.2% to 6.5%. That would put the full-year annual GDP growth rate at the fastest pace in 33 years. (They also put growth rates at 3.3% for 2022, and 2.2% in 2023.) All in all, it was an upbeat assessment. And why it looks like there's a lot more upside to go for both the economy and the market. To learn how to position yourself to take full advantage of it, be sure to read my latest commentary... Why Stocks Are Poised To Soar Best,  Kevin Matras
Executive Vice President, Zacks Investment Research | 
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