* Fed sees higher growth, rates remain steady
* US 10-yr yield largely holds steady after statement
* Oil falls further on demand outlook, U.S. stock build (Updates with reaction to Fed meeting)
By Lewis Krauskopf
NEW YORK, March 17 (Reuters) - A gauge of global stocks cut losses on Wednesday and benchmark U.S. Treasury yields largely held gains after the Federal Reserve repeated its pledge to keep its target interest rate near zero for years to come.
The U.S. dollar also weakened after the highly anticipated statement from the U.S. central bank, which projected a rapid jump in U.S. economic growth and inflation this year as the COVID-19 crisis winds down. benchmark 10-year Treasury note US10YT=RR , which touched 1.689%, its highest level since January 2020, earlier in the session, last fell 11/32 in price to yield 1.6603%, from 1.623% late on Tuesday.
“The Fed statement today was more optimistic than some expected, they raised their outlook for both economic growth and the labor market," said David Carter, chief investment officer at Lenox Wealth Advisors in New York. "The market's view of the statement is that it was fairly optimistic."
On Wall Street, major indexes were mixed after moving higher after the Fed statement.
The Dow Jones Industrial Average .DJI rose 140.82 points, or 0.43%, to 32,966.77, the S&P 500 .SPX lost 0.9 points, or 0.02%, to 3,961.81 and the tech-heavy Nasdaq Composite .IXIC dropped 33.15 points, or 0.25%, to 13,438.42.
The pan-European STOXX 600 index .STOXX lost 0.45% and MSCI's gauge of stocks across the globe .MIWD00000PUS shed 0.06%, after falling more sharply earlier in the session.
In currencies trading, the dollar index =USD fell 0.33%, with the euro EUR= up 0.52% to $1.1962.
Oil slipped for a fourth day, weighed down by expectations of weaker demand in Europe and by rising U.S. crude inventories. crude CLc1 recently fell 0.17% to $64.69 per barrel and Brent LCOc1 was at $68.11, down 0.41% on the day.
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ INSTANT VIEW-FOMC: Accelerated growth seen, only slight change in tightening outlook
Emerging markets
http://tmsnrt.rs/2ihRugV Global asset performance
http://tmsnrt.rs/2yaDPgn Tolerated Inflation Hump?
https://tmsnrt.rs/3qV72Xj A steeper U.S. Treasury yield curve
https://tmsnrt.rs/3tsINRP World FX rates
http://tmsnrt.rs/2egbfVh
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Additionl reporting by Stephen Culp in New York, Dhara Ranasinghe in London; Editing by Elaine Hardcastle and Nick Zieminski)