Federal Reserve’s Tone in March Signals Cautious Approach, Despite Hawkish Expectations

Interest rates held steady as the Fed said it will closely monitor data before making significant policy changes.

FILE PHOTO: A cyclist passes the Federal Reserve building in Washington, DC, U.S., August 22, 2018. REUTERS/Chris Wattie/File Photo

Despite expectations of a more hawkish stance, the Federal Reserve’s policy-setting arm, the Federal Open Market Committee (FOMC), concluded its two-day meeting on Wednesday by signaling a cautious approach, which one expert described as surprising and “extraordinary.”

The FOMC kept interest rates in their current range of 5.25–5.5 percent, with no cuts or raises, and sent the benchmark S&P 500 stock index to close at an all-time high of 5,224.