The Fed Holds The Line On Interest Rates

The Federal Reserve did the expected today and is holding interest rates to the current range of 2.25 to 2.5 percent.

The expectation is now for a single rate increase in 2020 and none in 2021.

The central bank's new theme of patience and flexibility reflects its calming response since the start of the year to slow economic growth at home and abroad, a nervous stock market and persistently mild inflation. The Fed executed an abrupt pivot when it met in January by signaling that it no longer expected to raise rates anytime soon.

The shift toward a more hands-off Fed and away from a policy of steadily tightening credit has pleased investors and encouraged the view that the central bank is done raising rates for now and might even act this year to support rather than restrain the economy.

Here are some live reports and reaction from the Fed meeting:

US Federal Reserve downgrades US GDP growth in 2019 to 2.1% (from 2.3%). Well below 2018’s 3% and White House 2019 boosterism. Fed so concerned about weaker growth it’s indicated no interest rate rises in 2019 + stop rollback of QE in September.

— Andrew Neil (@afneil) March 20, 2019

The Fed capitulation is complete and official.
Think that's bullish all you want.
It's not.
It's an admission of failure.

— Sven Henrich (@NorthmanTrader) March 20, 2019

Notwithstanding the slight downward revision to the #economic outlook, the #Fed delivered the notably dovish policy move that markets wanted included ... a September end to balance sheet reduction, a defined path to that point, and the signal of no rate hikes for 2019.#economy

— Mohamed A. El-Erian (@elerianm) March 20, 2019

Balance Sheet Normalization Principles and Plans: https://t.co/x0xbqkrUwY

— Federal Reserve (@federalreserve) March 20, 2019

US Dollar Index (DXY) dives as cautious #FederalReserve expects no rate hike in 2019. pic.twitter.com/y99SivE9CG

— jeroen blokland (@jsblokland) March 20, 2019

#FederalReserve plans to end balance sheet drawdown in September. pic.twitter.com/9aF3WzpnIl

— jeroen blokland (@jsblokland) March 20, 2019

InsuranceNewsNet Senior Editor John Hilton has covered business and other beats in more than 20 years of daily journalism. John may be reached at john.hilton@innfeedback.com. Follow him on Twitter @INNJohnH.