NEW: Federal Reserve decides not to raise interest rates; indicates that no more hikes will be coming in 2019.
Federal Reserve Board Chairman Jerome Powell delivers the Federal Reserve?EURs Semiannual Monetary Policy Report to the House Financial Services Committee on Capitol Hill in Washington on Feb. 27, 2019.Get breaking news alerts and special reports. The news and stories that matter, delivered weekday mornings.Not only did the Federal Reserve decide Wednesday not to raise interest rates, but it also indicated that no more hikes will be coming this year.
However, there now appears to be no likelihood of a hike unless conditions change significantly. In its post-meeting statement, the FOMC indicated it would remain “patient” before adopting any further increases. For a central bank not so long ago intent on normalizing policy from its financial crisis-era accommodation levels, the developments at this week’s meeting represent a striking change in direction.
Along with the historic lows in rate came three rounds of bond buying that helped provide liquidity to financial markets. The program had pushed the Fed’s balance sheet to $4.5 trillion, which it has sought to lower through a program that allowed proceeds from the bonds to roll off each month. The unemployment rate for this year is now seen at 3.7 percent, up 0.2 percentage points from December.
In the statement explaining its decision, the committee said economic activity “has slowed” even though the labor market remains “strong” despite February’s weak 20,000 growth in nonfarm payrolls.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Oil and equities prepare to party like it's 1999: KempInvestors seem to be betting history will repeat itself, with the Federal Reserv...
Read more »
Fed holds line on rates, says no more hikes ahead this yearNot only did the Federal Reserve decide Wednesday not to raise interest rates, but it also indicated that no more hikes will be coming this year.
Read more »
Fed now sees no rate hikes in 2019The Federal Open Market Committee released its quarterly economic forecast, which includes the so-called dot plot of where members anticipate interest rates to head.
Read more »
Fed is expected to stay 'patient' and project fewer interest rate hikesPowell is expected to note that while the US economy is on firm footing, it faces risks from slowing growth and trade conflicts, the AP reports.
Read more »
Hopes of Fed standing pat on rate hikes drive Wall Street higherWall Street's main indexes climbed on Tuesday, as investors hoped for a mor...
Read more »
US Treasury yields tick lower ahead of Fed rate decisionU.S. government debt prices ticked higher as investors await a policy decision by the U.S. Federal Reserve.
Read more »
Fed holds rates steady; here's what that means for your walletHere's a breakdown of what Wednesday's Fed decision means for your bank account, mortgage, credit card, student loan balance and car payment.
Read more »
RWE’s German carve-up looks better than E.ON’sA year after a 17 bln euro asset swap, the German utilities’ deal is in Brussels’ antitrust sights. It’s more an issue for E.ON, which may lose out if forced disposals erode hoped-for cost savings. RWE, meanwhile, seems to have chosen the right time to bulk up in renewables.
Read more »
The Latest: Federal Reserve signals no rate hike in 2019BREAKING: The Federal Reserve is leaving its key interest rate unchanged and projecting no rate hikes in 2019, dramatically underscoring its plan to be 'patient' about any further increases.
Read more »