The Federal Reserve's dot plot shows that officials still expect to cut interest rates three times this year. The market interpreted it as dovish. U.S. stocks, U.S. bonds and gold rose, and the U.S. dollar fell rapidly.

Before the release of the Fed’s decision statement

Before the release of the Federal Reserve's March resolution statement and dot plot, major assets had little fluctuation, U.S. stocks were almost flat, and U.S. bond yields fell slightly.

The S&P 500 index remained flat near 5,175 points, the Dow Jones Industrial Average remained flat near 39,130 points, and the Nasdaq fell slightly by less than 0.1%, temporarily trading at 16,157 points. Tesla rose 1.1% to $173.30. Apple rose 0.3% to $176.62. Nvidia fell 0.9% to $885.50.

The U.S. 10-year Treasury bond yield fell 1.4 basis points to 4.2790%. The two-year U.S. Treasury yield fell 1.3 basis points to 4.67%. The 2/10-year U.S. Treasury yield curve was flat at around -39.5 basis points.

The ICE U.S. Dollar Index rose 0.09% to 103.90. The euro was flat near 1.0866 against the dollar, the pound against the dollar was flat near 1.2720, and the dollar against the yen was up 0.45% at 151.55.

Spot gold rose 0.1% to $2,160.

After the release of the Fed’s decision statement and dot plot

The Federal Reserve stayed on hold and reiterated in its decision statement that it would wait until it was more confident about inflation before cutting interest rates. The Fed's dot plot still predicts three interest rate cuts this year, with the federal funds rate at the end of 2024 at 4.6%, the same as last December's forecast. However, the dot plot's forecasts for 2025, 2026, and the long-term federal funds rate have all been revised upwards. In addition, the Federal Reserve raised its core PCE inflation forecast for 2024 to 2.6%.

The market is paying more attention to the Federal Reserve's prediction of interest rate cuts this year, which the market interprets as dovish. U.S. stocks, U.S. bonds, and gold have risen, and the U.S. dollar has fallen rapidly.

The S&P and Dow Jones Industrial Average expanded their gains to nearly 0.3%, while the Nasdaq rose about 0.5%.

The yield on the two-year U.S. Treasury note plunged about 7 basis points to a new daily low, approaching 4.6%.

The price of gold rose by about $8, setting a new daily high and approaching $2,166.