HOLDING PATTERN

Federal Reserve Predicts No Interest Rate Increases in 2019

The Fed held interest rates at current levels on Wednesday.

The Federal Reserve held interest rates at current levels on Wednesday, expressing concern over slowing economic growth. Officials also showed little intent to raise rates in the near future, signaling an opposing outlook to a determinately optimistic forecast from the White House. The Fed said in a post-meeting statement that “growth of economic activity has slowed from its solid rate in the fourth quarter,” citing slowdowns in household spending and business fixed investment. Forecasting data released shows the typical member of the Federal Open Market Committee now expects not to raise rates at all this year. The holding pattern is an abrupt halt to what had been a steady march of rate increases to the current range of 2.25 to 2.5 percent. The typical member now expects a single rate increase in 2020 and none in 2021.

NOTHING IS SACRED

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