From CNBC:

The Federal Reserve signaled a pause on raising interest rates but is not ready to start cutting. Fed Chair Jerome Powell indicated a March rate cut is unlikely, causing the stock market to drop. Despite implied caution, the Fed is still on track to reduce its benchmark rate later this year.

Economists are now adopting a soft-landing narrative where the Fed can bring inflation down without hindering economic growth. Reports indicated a softening labor market and stagnant wage growth. Key indicators show that inflation is at its lowest levels since 2021, laying the groundwork for potential changes to Fed policy on rates and the economy.



Read more: Officials leave rates unchanged, as expected