ZROZ - Fed Holds Steady Projects Patience Going Forward
By Collin Martin
As expected, the Federal Reserve on Wednesday kept its key short-term interest rate steady, maintaining the 2.25% to 2.5% target range for the Federal Funds rate.¹ The decision was unanimous.
However, although the rate was left unchanged, updates to the Federal Open Market Committee (FOMC) statement had a more "dovish" tilt, indicating that the pace of rate hikes going forward may be slower than initially projected. Bond yields fell and stock prices rose after the meeting on expectations that the pace of rate hikes will slow, easing upward pressure on bond yields