The Federal Reserve all but swore off raising interest rates again this year – a swing that could signal the end of its three-year monetary policy tightening cycle.
As they kept the federal funds rate steady in a range of 2.25% to 2.5% on Wednesday, Fed officials suggested no rate increases would come this year — after indicating in December that two could take place.
The U.S. central bank also indicated it intends to end the reduction of its massive $4.2 trillion balance sheet by September.
That should please President Donald Trump, who has repeatedly criticized Fed Chair Jerome Powell for raising interest rates.
The dovish outlook on monetary policy was attributed to signs of slowing U.S. economic growth even as the labor market remains strong.
