By Joe Wallace and Ryan Dezember

Stocks are back on the rise after the Federal Reserve held interest rates steady on Wednesday, while lowering its forecasts for growth this year.

The Fed was expected to keep rates on hold Wednesday, and pencil in one or two cuts for 2025. Investors were focused on the central bank's "dot plot," which showed 11 of 19 policymakers expect the Fed to cut rates at least twice this year, instead of the 15 officials who had penciled in at least two cuts in December.

Though more hawkish, it wasn't as hawkish as many investors feared, which added fuel to Wednesday's stock market rally.

Chairman Jerome Powell's comments are offering clues about the central bank's approach to tariffs, which pose a challenge by threatening to slow growth and quicken inflation at the same time.

The central bank also approved plans to slow the reduction of its $6.8 trillion asset portfolio, seeking to avoid money-market strains this year after lawmakers raise the federal debt limit.

Overseas, Turkish markets tumbled after the arrest of Istanbul's mayor, a leading political opponent of President Recep Tayyip Erdogan. Turkey's stocks and currency slid.

In recent trading:

U.S. stock indexes advanced, with the Nasdaq Composite leading the way. On Tuesday, stocks resumed their recent decline, yanked lower by a slide in Nvidia and other big tech companies.

Ten-year Treasury yields gave up earlier gains and traded below Tuesday's close of 4.28%.

The U.S. dollar strengthened against a basket of currencies.

Turkey's lira dropped more than 3% against the dollar. The Borsa Istanbul 100 index fell 8.7%.

Gold prices notched a new record high, adding 80 cents a troy ounce to settle at $3,035.90.

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(END) Dow Jones Newswires

March 19, 2025 15:08 ET (19:08 GMT)

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