Later on, Wednesday, the 20th of March 2019, the US Federal Reserve had put an end to its rancorous cycle of rate hiking, evaporating possibilities of any rate hike this year amid signs of a steep economic slowdown. Besides, the Fed also added that it would be halting its steady balance sheet in September.
A fresh monetary policy came into effect on Wednesday after a two-day long meeting on Washington and the new monetary policy means that the Federal Reserve would return the nation’s policy on a more conventional footing.
Never the less, US central bank had also reverted back interest rate to a near-zero level during the period of financial crisis and recession between 2007-2009. Following the two-day long meeting, policymakers said that the Federal Reserve had downsized their growth forecast, unemployment, and inflation forecast.
Apart from that, the Fed had also added that the interest rate would more likely to remain at a current level or between 2.25 to 2.5 percent for at least throughout this year, a transitional shift of their outlook. In a press conference following the policy meeting, supporting his “patient” stance, Fed Chair Jerome Powell said, “It may be some time before the outlook for jobs and inflation calls clearly for a change in policy”.