US stocks traded in a narrow range on Wednesday as investors reacted to the Federal Reserve’s latest comments. A key Fed member, James Bullard, hinted that interest rates could be cut soon if economic data continues to weaken. Investors were cautious in response and US stocks remained relatively flat throughout the day.
Bullard’s remarks suggested that he was open to lowering interest rates sooner than expected due to concerns about slowing global growth and uncertainty around trade tensions between the United States and China. The market responded by trading sideways for most of the day before closing slightly higher after Bullard clarified his statement later in the afternoon saying that any rate cuts would only happen if economic conditions continued to deteriorate further from here.
Overall, investors seemed hesitant following Bullard’s initial comments but appeared reassured when he clarified them later on Wednesday afternoon which led US stocks to close slightly higher at the end of the trading session despite an overall lackluster performance during intraday trading hours.
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