Home BUSINESS Wall Street remains lower after Fed minutes

Wall Street remains lower after Fed minutes

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May 19, 2021

By Medha Singh and Noel Randewich

(Reuters) – Wall Street’s main indexes remained lower on Wednesday after Fed minutes showed participants agreed the U.S. economy remained far from the Fed’s goals, with some eyeing a future discussion of tapering.

A number of Fed policymakers thought that if the economy continued rapid progress, it would become appropriate “at some point” in upcoming meetings to begin discussing a tapering of monetary policy measures.

A couple of Fed policymakers raised concerns that inflation will rise to “unwelcome” levels before the case for policy action becomes sufficiently evident.

Strong inflation readings and signs of a worker shortage in recent weeks have fueled fears of inflation and roiled stock markets despite reassurances from Fed officials that the rise in prices would be temporary.

All 11 major S&P sectors were lower, with energy and materials down 1.7% and 2.4%, respectively, leading declines.

The Dow Jones Industrial Average was down 0.75% at 33,804.75 points, while the S&P 500 lost 0.52% to 4,106.41. The Nasdaq Composite dropped 0.21% to 13,275.24.

(Reporting by Medha Singh in Bengaluru; Editing by Saumyadeb Chakrabarty Maju Samuel and Aurora Ellis)