The US Federal Reserve sent a strong signal for interest in interest.
Monetary authorities want to be "patient" in future key interest rate adjustments, he said in a statement of monetary policy. The previously contained passage, which is likely to require further interest rate hikes, has fallen. In addition, the central bank reduced its assessment of the economic situation; Then the economy grows only "solid" and not "strong". Economists and stock traders expect interest rates to remain between 2.25% and 2.50%. The decision was unanimous.
The Fed is expected to remain inactive for longer than anticipates the effects of interest rate hikes. Fed Chief Jerome Powell last saw his flexibility in Monetary Policy proven; The Fed would react in the way that the current economic situation requires. In 2018, the Fed raised interest rates four times, always by 25 basis points.
Regarding the reduction in the balance, the Fed said it was ready for more flexibility if circumstances warranted. The diminishing portfolio was observed in December after they were market players and the president Donald Trump blame for increasing market volatility.
Nick Nick Timiraos
WASHINGTON (Dow Jones)
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