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The Federal Reserve dimmed some of the optimism investors have had about a swift economic rebound Wednesday, warning that the road to recovery from the worst downturn in decades would be long. That, coupled with the recent run-up in stock prices, set the stage for the wave of selling Thursday, said Sal Bruno, chief investment officer at IndexIQ. “It’s not surprising to see a bit of a sell-off, given the furious rally we’ve had coming out of the lows, despite the fact that the economy was not doing great,” Bruno said. “The fact that (the Fed) is talking about keeping interest rates this low through 2022 is a little eye-opening for a lot of folks.” The Dow was down 6.1% to 25,329. The Nasdaq composite, which rose above 10,000 for the first time a day earlier, slid 4.7%. Small company s...

The selling comes as coronavirus cases rise in the U.S., with some of the increase likely tied to the reopening of businesses and the lifting of stay-at-home orders. Cases are rising in nearly half the states, according to an Associated Press analysis, a worrying trend that could intensify as people return to work and venture out during the summer. Investor optimism for a speedy recovery in the economy was also dimmed by the Federal Reserve, which warned Wednesday that the road to recovery from the worst downturn in decades would be long and vowed to keep rates low for the foreseeable future. Those factors, along with the recent run-up in stock prices, set the stage for the wave of selling Thursday, said Sal Bruno, chief investment officer at IndexIQ. “It’s not surprising to see a bi...

That plan also included an expansion of offshore drilling in California, a move that would escalate the ongoing battles between the state and the administration over environmental issues since Trump took office. The people did not know whether the final proposal will include that section of coastline as well. “Whatever is decided is expected to come out within two to three weeks of the election,” said one person who has had recent discussions with Interior officials about the issue and who agreed to speak only on condition of anonymity. The eastern Gulf is the “golden trophy” for the industry because it could be producing oil within 10 years using existing infrastructure from the Gulf’s western portion, the person said. A second person who recently spoke to Interior officials said they had...

But central bank officials signaled that they believe unemployment will one day fall to as low as 4 percent, though it will take longer than the next couple of years to reach that point. The jobless rate in February stood at 3.5 percent, its lowest reading since the 1960s. According to the Fed’s forecasts, the U.S. economy will grow at 5 percent next year and 3.5 percent the year after. The projections — which estimate future GDP growth, inflation, unemployment and the path of Fed rate moves — are normally a quarterly exercise, but the central bank did not release any in March because the situation was so uncertain. You Deserve to Make Money Even When you are looking for Dates Online. So we reimagined what a dating should be. It begins with giving you back power. Get to meet Beautiful peop...

“This is the biggest economic shock, in the U.S. and in the world, really, in living memory,” Fed Chair Jerome Powell said at a press conference after central bank officials met in Washington. ”We went from the lowest level of unemployment in 50 years to the highest level in close to 90 years, and we did it in two months.” Incumbent presidents are historically unlikely to be reelected when the economy is in dire straits, putting pressure on Trump to ensure a quick rebound. But the circumstances of the recession — a broad economic shutdown to stop the spread of a pandemic — could soften voter views of the president, who has consistently polled well on economic matters even as he lags behind Democratic rival Joe Biden overall. Powell, whose Fed has poured trillions of dollars in credit into ...

“Continued business closures and the reduction in hours worked mean that the supply of certain goods and services will remain suppressed,” the head of the independent budget agency wrote. “At the same time, as people limit their social interactions, household and business demand for many goods and services will be subdued.” “Therefore, CBO estimates that as long as some degree of social distancing remains in place, the economic boost that might be expected from recent legislation will be smaller than it would be during a period of economic weakness without social distancing,” he said. Spending by individuals and businesses will be recovered in the future “as stay-at-home orders and other interventions continue to ease,” he said. Swagel cautioned that CBO’s projections are clouded by ...

“What Powell has been warning is … ‘Don’t keep looking at us, what we’re doing is making sure it doesn’t get worse,’” said William Spriggs, chief economist at the AFL-CIO. Central to the Fed’s messaging will be the release of its forecasts for how the economy will fare over the next few years, a quarterly exercise that the central bank declined to carry out in March because the situation was so uncertain. The projections — which estimate future GDP growth, inflation, unemployment and the path of Fed rate moves — will be less reliable than in normal times, said George Selgin, a senior fellow at the Cato Institute. “But it’s still good news that they are prepared to make such a forecast,” he said. “The very fact that they’re making it means they’re getting a handle on things.” Selgin said th...