Fed Sees No Rate Hikes in 2019, Plans to Slow Balance Sheet Reduction

Fed Sees No Rate Hikes in 2019, Plans to Slow Balance Sheet Reduction
U.S. Federal Reserve Board chairman Jerome Powell speaks during a news conference on March 20 in Washington, DC. Mark Wilson/Getty Images
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WASHINGTON—The Federal Reserve held interest rates steady on March 20 and its policymakers abandoned projections for further rate hikes this year as the U.S. central bank flagged an expected slowdown in the economy.

In a major shift in its perspective, the Fed also now expects to raise borrowing costs only once more through 2021, and no longer anticipates the need to guard against inflation with restrictive monetary policy.