Fed Holds Rates Steady, Notes Strong Economy and Tighter Conditions; Markets Rise Then Pare Gains
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The Fed held interest rates steady but acknowledged the economy's strength and tighter financial conditions.
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Markets initially rose on the news before paring gains. The dollar index gained.
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Analysts say the Fed will likely keep rates on hold into 2024 due to disinflation progress.
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The Fed could hike again if inflation expectations rise but may cut rates if the economy slows more.
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The Fed added "financial conditions" to its statement, which markets interpreted as dovish and focused on for hints about future policy.