US stocks edge up, dollar falls after Fed statement

NEW YORK: US stocks edged higher while the dollar and Treasury yields fell on Wednesday after the Federal Reserve held interest rates steady and said inflation had "moved close" to its target.

That would leave the central bank on track to raise borrowing costs in June.

"Their outlook is roughly balanced. The fact is that they are not in a rush to raise rates faster. They may still raise rates in June. This has allowed Treasuries to bounce here and the dollar is coming off," said John Canavan, market strategist at Stone & McCarthy Research Associates in New York.

In a statement following the end of a two-day policy meeting, the Fed also said that "on a 12-month basis is expected to run near the Committee's symmetric 2 percent objective over the medium term."

The dollar index fell 0.12 percent, with the euro  up 0.13 percent to $1.2008.

On Wall Street, the Dow Jones Industrial Average rose 36 points, or 0.15 percent, to 24,135.05, the S&P 500 gained 1.48 points, or 0.06 percent, to 2,656.28 and the Nasdaq Composite added 29.21 points, or 0.41 percent, to 7,159.92.

Forecast-beating results from the world's biggest company, Apple Inc, lifted tech shares.

The MSCI's gauge of stocks across the globe gained 0.18 percent.

Benchmark 10-year notes last rose 3/32 in price to yield 2.9644 percent, down from 2.976 percent late on Tuesday.

In the oil market, US crude rose 0.95 percent to $67.89 per barrel and Brent was last at $73.41, up 0.38 percent on the day.