Fed now says they will be more patient and stable with rate hikes

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Stocks rose sharply on Wednesday after the Federal Reserve kept interest rates unchanged and stated it will be "patient" with raising rates moving forward.

"It seems like the Fed is becoming more market dependent rather than data dependent," said Jack Ablin, founding partner of Cresset Wealth. "The market has become accustomed to below fair-value interest rates and trying to raise them is creating hardship. Accommodation is the new neutral."

In a statement, the central bank said: "The Committee will be patient as it determines what future adjustments to the target range for the federal funds rate may be appropriate." The statement also dropped the word "gradual." "This was a pretty dramatic change from what they were saying in December, even though it's not unexpected," said James Kahn, chairman of the economics department at Yeshiva University. "They basically went from saying we're going to continue raising rates into 2019 to not saying one way or the other what they're going to do."

Dow surges more than 400 points to above 25,000 after Fed signals patience with rate hikes