Fed admits to economic uncertainty

While acknowledging the economy had rebounded since March and April, the Federal Reserve on Wednesday expressed concern that the coronavirus pandemic “will weigh heavily on economic activity, employment, and inflation.” The agency announced it will continue to buy $120 billion in Treasury and mortgage bonds each month, but what happens next will depend significantly on the course of the virus.

How did markets respond? Stocks on Wall Street closed higher on Wednesday. The S&P 500 had its best day in two weeks, climbing 1.2 percent, and gold reached a record high.

Dig deeper: Listen to Mary Reichard and analyst David Bahnsen discuss the economy on The World and Everything in It.