From Nasdaq.:

The Federal Reserve announced that interest rates will remain unchanged during a press conference with Fed Chair Jerome Powell. Powell emphasized that instead of focusing on a single instance of achieving the 2% inflation target, the decision to lower interest rates will be based on a consistent and sustained period of inflation remaining at that target level.

According to Powell, the economy is on better balance, with average payroll gains of 165,000 jobs per month and a low unemployment rate. He also stated that if the economy evolves as expected, it will likely be appropriate to begin dialing back policy restraint at some point this year.

Despite the improvement in inflation, Powell stressed that it’s still too early to declare victory. He also pushed back against market expectations of a rate cut in March and reiterated a data-dependent approach going forward for the Fed. Market responses to Powell’s speech were immediately marked by a downward shift in stock prices, a strengthening U.S. dollar, and a rise in Treasury yields.



Read more: Powell Chills Investors, Says ‘I Don’t Think It’s Likely’ Rate Cuts Arrive In March, Stocks Sink (UPDATED)