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6/19, 8:00 PM (Source: TeleTrader)
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Fed keeps interest rates unchanged, signals no 2019 cuts

The Federal Reserve's Federal Open Market Committee (FOMC) announced on Wednesday it will keep the target range for the federal funds rate steady at 2.25%-2.5%. Nine members of the FOMC voted to hold key interest rates, while St. Louis Fed President James Bullard was the only participant to vote for a rate cut. The central bank also signaled there will be no rate cuts at least until 2020.

In addition, the FOMC dropped the word "patience" as a way to describe its current monetary policy approach. The statement also slashed the estimate for headline inflation this year to 1.5% from March's forecast of 1.8%. The committee changed the way it described the US economic activity from "solid" to "rising at a moderate rate," which is seen as a downgrade.

"In light of these uncertainties and muted inflation pressures, the Committee will closely monitor the implications of incoming information for the economic outlook and will act as appropriate to sustain the expansion, with a strong labor market and inflation near its symmetric 2 percent objective," the statement said.

Breaking the News / FH