Powell Says The Fed Didn't Mean Anything By Striking Language About Balance

Powell said that there shouldn't be any signal taken from the committee removing the language of their dual mandate being in balance. He said it had just outlived its usefulness.

Recession Chances Are Still Low, Powell Says

Powell said the Fed does not m🍸ake predictions about recessions, but there is always a small chanc𝄹e of the economy falling into an economic downturn.

He said that while outside economists have raised their♛ chances of a recessio❀n happening, they are still rather low probabilities.

Fed Chair Jerome Powell Says They Are "Not In a Hurry" Amid Uncertainty

Federal Reserve Chair Jerome Powell's read a prepared statement to kick off his press conference, and much of it revolved around how uncertainty in policy is affecting the economy.

"The new administration is in the process of implementing policy changes in four distinct areas: trade, immigration, fiscal policy, and regulation. It is the net effect of these changes that will matter for the economy, and for the path of monetary policy," he said. "While there have been recent developments in some of these areas, especially trade policy, uncertainty around the changes and their effects on the economic outlook is high.”

He also said he and his colleagues are "not in a hurry" to cut interest rates amid the uncertainty.

“We are focused on separating the signal from the noise as the outlook evolves," he said.

You can watch Powell's press conference live here.

The Fed's Economic Projections Get More Pessimistic

Fed official🐭s adopted a more pessimistic outlook for the year ahead in their latest eco🍎nomic projections.

At Wednesday's meeting, members of the Federal Open Market Committee penciled in the unemployment rate rising to 4.4% by the end of the year, up from 4.3% in December. They also projected inflation, as measured by core Personal Consumption Expenditures, will rise at 2.8% over the year, up from 2.5% in the December projections. They also expected GDP to grow 1.7%, less than the 2.1% they projected in December.

What didn't change, however, was the number of rate cuts penciled in this year. Just like in December, the committee expects to cut its influential interest rate by half a percentage point this year.

Read more about statement and economic projections here.

The Fed Statement Focuses In On Uncertainty

The FOMC statement released Wednesday removed mentions of its employment and inflation goals being in balance from its last statement. The removal sharpened the Fed's focus on the uncertainty in the economy.

The FOMC 澳洲幸运5官方开奖结果体彩网:carefully constructs the stat🌌ements to convey its views on the current economic situation and potential future policy acti🥂ons to the market.

Federal Reserve Leaves Its Interest Rate Untouched For Second Consecutive Meeting

The Federal Open Market Commi♓ttee held the fed funds rate at a range of 4.2ꦚ5% to 4.5% at its meeting Wednesday.

This is the second meไeting in which officials have left their influential interest rate unchanged. In January, the committee ended a three-meeting streak of rate cuts♒ by standing pat. 

The fed fu🃏nds rate influences borrowing costs on a♍ll kinds of loans including credit cards, auto loans and personal loans.

Summary of Economic Projections May Not Provide Many Clues

The statement released after March’s meeting concludes on Wednesday is scheduled to include a Summary of Economic Projections (SEP). 💞The SEP is rele🗹ased four times a year after every other FOMC meeting.

The economic projections are a snapshot of where the 19 committee members think the economy is headed. The most closely watched element of the SEP is the "dot plot," in which members 澳洲幸运5官方开奖结果体彩网:project the future fed funds rate. Economists typically find the median of the projection to give an id🍨ea of the federal fund rate’s path.

However, this time, it may be murkier because of the Fed’s holding pattern and 澳洲幸运5官方开奖结果体彩网:uncertainty in the economy.

Why Is the Fed Hesitant to Cut Rates?

Uncertainty seems to be spre🥂ad🧸ing through the economy, and the Fed is seemingly not immune. 

Some of President Donald Trump's proposed economic policies have 澳洲幸运5官方开奖结果体彩网:stoked uncertainty, 澳洲幸运5官方开奖结果体彩网:undermined confidence among business leaders and consumers, 澳洲幸运5官方开奖结果体彩网:sent stocks tumbling, and 澳洲幸运5官方开奖结果体彩网:raised fears of a possible economic downturn.

The Fed is reluctant to act until there is more clarity on which of President Trump's tariff threats will be implemented and the impact those tariffs will have on 澳洲幸运5官方开奖结果体彩网:inflation and economic growth.

There's a 99% Chance the Fed Will Its Influential Interest Rate Flat Today

Financial markets are overwhelmingly betting the Fed will hold its benchmark 澳洲幸运5官方开奖结果体彩网:federal funds rate at a range of 4.25% to 4.5% today.

According to the CME Group's FedWatch tool, which forecasts rate movements based on fed funds futures trading data, there is a 99% chance that the Fed won't change its key interest rate, which influences borrowing costs of all kinds.

 It would be the second meeting in a row that the 澳洲幸运5官方开奖结果体彩网:Federal Open Market Committee stood pat. In January, th🎃e FOMC kept the rate unchanged after cutting it by a percentage point over the previousꦗ three meetings.

Read more about what to expect from the Fed's interest rate policy decision here.