Federal Reserve Holds Interest Rates Steady Ahead of Midterms. Here's What That Means for the Market.

No news is usually good news when it comes to the Federal Reserve's interest rate decisions, and no news was exactly what the market received today. The Federal Reserve voted 10-2 to hold its benchmark interest rate steady at 3.75%-4%. This was widely expected, with prediction markets putting the odds of a hold at over 90%. The outcome was such a foregone conclusion that markets reacted with a yawn. The S&P 500 Index rose less than 0.5% in the wake of the announcement, while the Dow Jones Industrial Average and the Nasdaq Composite were up by smaller amounts. The yield on the 10-year Treasury bond increased by about 1%.

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