The Fed: Fed holds interest rates steady — but it leaves itself plenty of wiggle room by removing ‘patient’ pledge

Bloomberg News/Landov
Fed Chairman Jerome Powell is standing pat on U.S. interest rates despite pressure from President Trump to cut them.

The Federal Reserve on Wednesday left its key interest rate unchanged and signaled it’s unlikely to cut borrowing costs in 2019, but the central bank also left itself wiggle room by saying it would “closely monitor” the economy in light of waning inflation and growing “uncertainties.”

After a two-day meeting, the Fed held its benchmark fed funds rate steady between 2.25% and 2.5%. The Fed said the labor market “remains strong” and the economy continues to expand at a “moderate” pace.

“The reality is that the economy is still in fighting shape,” said Steve Rick, chief economist at CUNA Mutual Group.

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