The Federal Reserve said that interest rates would stay near 0 until at least 2023. Despite this news, the stock market closed down for the day on Wednesday, clearly feeding on the Fed’s despair at having had to make such a drastic move.
The semi-permanent interest rate is meant to fight against inflation and unemployment. The Fed is concerned that no stimulus package has been passed by Congress and has to manipulate the market accordingly.
Meanwhile, President Trump has indicated that he would like to work with Democrats to come to a deal finally. The Republican Party does not want to spend money while national debt looms higher than ever, but the President has broken with them and said that he’d be open to “the larger numbers.” We take this to mean that he wants his party to come to open their wallets a bit and find a real compromise between the Republicans’ $500 million and the Democrats’ $2.2 trillion proposals.