As expected, the Federal Reserve announced on Wednesday that it would not raise interest rates, but policymakers changed the closely watched policy statement to reflect that the central bank is in "wait-and-see" mode as it considers future rate hikes.
Between the lines: The Fed has adopted a more dovish stance in recent months — amid market volatility, shaken confidence in the global economy and criticism from President Trump. In the policy statement, officials removed language that "some further gradual [rate] increases" were coming and added that it would be "patient" in determining rate adjustments.
The Fed also signaled more flexibility in its plans for shrinking its multitrillion-dollar balance sheet. In a statement, officials said the Fed is "prepared to adjust any of the details for completing balance sheet normalization in light of economic and financial developments."
- Late last year, Trump tweeted that the Fed should "stop with the 50 B's," referring to the $50 billion maximum the Fed can shrink the balance sheet per month.
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