Shares of industrial and transportation companies rose after Federal Reserve officials maintained their projections for three interest rate cuts this year despite recent up-ticks in inflation data.
In its summary of economic projections, the central bank raised its projection for economic growth in 2024 significantly, but only marginally increased targets for the core personal consumption expenditure price index. Fed officials also expect inflation, excluding volatile food and energy prices, to end the year at 2.6%, up from December's 2.4% estimate.
The Fed also forecast gross domestic product growth of 2.1%, up sharply from 1.4% this year. "This is further evidence that the economy is doing better than many people feel or perhaps even believe," said J.D. Joyce, president of Houston financial advisory Joyce Wealth Management.
Fed Chairman Jerome Powell said the central bank still considers inflation too high, but sees price and growth prospects in a better balance than earlier in the current economic cycle.
The Biden administration enacted the strictest-ever rules for tailpipe emissions but also handed the auto industry a significant concession by giving them more time to comply -- a recognition that the transition to electric cars will take longer than hoped.
Freight railroad Norfolk Southern hired John Orr, chief transformation officer of Canadian Pacific Kansas City, to replace its chief operating officer as a fight for control of the company heats up.
Write to Rob Curran at rob.curran@dowjones.com
(END) Dow Jones Newswires
03-20-24 1740ET
