Fed holds rates steady, sees no cuts in 2019

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Fed holds rates steady, sees no cuts in 2019
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Fed leaves rates unchanged

A divided Federal Reserve held the line on interest rates at its meeting this week and indicated there are still no cuts coming in 2019. The decision was by the thinnest of margins, though, and still leaves open the possibility that policy loosening could happen before the end of the year depending on how conditions unfold.

The committee provided an important nod to those worried about slower growth: It dropped the word "patient" to describe its approach to policy. The characterization was a key part of the Fed "pivot" earlier this year that signaled to the market a more dovish approach to rates. In their baseline scenario, FOMC members said they still expect "sustained expansion of economic activity" and a move toward 2% inflation, but realize that "uncertainties about this outlook have increased."

The changes came amid what appeared to be little consensus among the committee about where rates go next.

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