Fed keeps interest rate close to zero

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The Federal Reserve kept its interest rate close to zero, its bond-buying programme the same and plans to continue supporting the economy despite the economic and employment growth.

Fed Chairman Jerome Powell has acknowledged that the economic recovery is more fast paced than expected but as he said it “remains uneven and far from complete.” Following Powell’s speech, Joe Biden addressed the Congress for the first time proposing a new $1.8 trillion stimulus plan, tax raises on corporations and wealthy Americans, and tax increases on investment income.

The Markets

Wall Street closed lower on Wednesday with the Dow Jones falling 0.48% to close at 33,820.38 points and the S&P 500 losing 0.08% to close at 4,138.18.

On Thursday, Asian shares continued soaring and U.S. markets are expected to open higher as E-mini futures for the S&P 500 index rose 0.53% and Nasdaq futures rose 0.87%.

Gold was up on Thursday morning in Asia as the weakening dollar further supported the valuable metal. Palladium, silver and platinum also rose.

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