The Dow hit an all-time high and record close on news of a tentative tax bill in Congress and a Fed interest rate hike.
As expected, Fed chairwoman Janet Yellen announced another one-quarter percent interest rate hike, with three more expected next year.
“Overall, we continue to expect the economy will expand at a moderate pace,” Yellen said Wednesday.
She also said the Republican-led tax reform bill will likely help grow the economy, but “the magnitude and timing of the macro economic effects of any tax package remain uncertain.”
Meanwhile, the Fed raised its GDP growth rate for 2018 to 2.5% and projected unemployment will fall below 4% next year.
Wall Street already was soaring before the announcement, but Pat Shinn, certified financial planner at Heritage Asset Advisors, says not everything was positive.
“The U.S. dollar did trade lower, as did longer term interest rates and yield in the ten-year treasury actually dipped down to 2.35 percent,” he said.