Stock market gains after Fed leaves rates unchanged, acknowledges pesky inflation and weak spending

U.S. stock benchmarks Wednesday afternoon headed modestly higher after the Federal Reserve left rates unchanged, as expected, to conclude its two-day policy meeting. The Dow Jones Industrial Average [: DJIA] was up 57 points, or 0.2%, at 26,651, the S&P 500 index rose 0.2% at 2,952, while the Nasdaq Composite Index climbed 0.6% at 8,142. The benchmark 10-year Treasury note yield fell to 2.46%, and gold futures in electronic trade climbed slightly to $1,288 an ounce, while the dollar index, the ICE U.S. Dollar Index was down 0.3% at 97.19. The rate-setting Federal Open Market Committee held benchmark rates at a range between 2.25% and 2.50%. However, the FOMC said that although the labor market remains strong, inflation has failed to climb above the central bank's 2% target, while household and business spending remain week. The Fed is scheduled to hold a news conference featuring Fed Chairman Jerome Powell at 2:30 p.m. Eastern Time.

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