By Mucahithan Avcioglu
ISTANBUL (AA) - US stocks ended lower Thursday after the Federal Reserve kept its policy rate unchanged and its chairman, Jerome Powell, mentioned tariffs as a source of concern.
The Fed on Wednesday held its benchmark interest rate steady at a range of 4.25% to 4.50%, as widely expected.
The bank raised its inflation and unemployment projections for 2025 while lowering its economic growth forecast.
Powell said that tariffs are a cause for concern, particularly among consumers, and that they may strain the economy.
US President Donald Trump on Thursday urged the Fed to begin cutting rates after the central bank’s decision to hold them steady.
"The Fed would be MUCH better off CUTTING RATES as U.S. Tariffs start to transition (ease!) their way into the economy," Trump said on social media, adding: "Do the right thing."
On the macroeconomic data side, initial jobless claims in the US increased by 2,000 last week to 223,000, slightly below market forecasts.
The US current account deficit fell by 2% year-on-year to $304 billion in the last quarter of 2024, also below market estimates.
Existing home sales increased by 4.2% monthly in February to 4.26 million, marking the highest figure in 12 months, also exceeding expectations.
The S&P 500 slid by 0.22%, or 12.40 points, to close at 5,662.89, and the Nasdaq Composite declined by 0.33%, or 59.16 points, to 17,691.63.
The Dow Jones Industrial Average fell slightly by 0.027%, or 11.31 points, to 41,953.32.
The VIX Index, also known as the “fear index,” also decreased by 0.5% to 19.80.