Dow soars above 25,000 for first time in nearly 2 months as Fed emphasizes 'patient' policy

The Dow Jones Industrial Average rose to session highs Wednesday afternoon, following a policy update from the Federal Open Market Committee that appeared to underscore a new regime of policy moderation (at least for the moment) for the central bank. The Dow gained 521 points, or 2.1%, at 25,100, the blue-chip gauge touched an intraday peak above the psychologically significant level at 25,000 and was on pace to register its best one-day gain since Jan. 4 when it soared 747 points or 3.3%, according to FactSet data. It was also on track to notch its highest closing level since early December. As expected, on Wednesday, the Fed kept interest rates unchanged in at a range of 2.25% to 2.5%, at the conclusion of its two-day rate-setting meeting. The Fed said it continues to think "the most likely outcome" for the U.S. economy is sustained growth with strong labor market conditions and inflation near 2%. However, it said it was flexible on adjusting the pace of unwind of its $4 trillion asset portfolio. At a news conference led by Fed Chairman Jerome Powell, the policy maker underscored that the Fed is attuned to prolonged market disruptions as result of its tightening. The S&P 500 index jumped 1.9% at 2,688, while the Nasdaq Composite Index climbed 2.4% at 7,197.

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