US stocks closed lower on Wednesday, giving up earlier gains, as comments from the Fed Chairman Jerome Powell following a monetary policy announcement sent interest rates lower and bank stocks along with them. The Dow fell -107 points or -0.4% to 26,385, while the S&P 500 declined -0.3% to 2,906. The NASDAQ fell +0.2% to 7,990.
Powell told reported after the Fed announced it raised rates for the third time this year he does not see inflation surprising to the upside, noting: "It's not in our forecasts." Along with the rate increase, the Fed continued to project one more hike before the end of the year and three in 2019.
Fed officials upped their outlook for U.S. economic growth this year and next. They now expect the U.S. economy to grow by 3.1% in 2018, up from 2.8%. They also see the economy expanding 2.5% in 2019, up from 2.4%.
