The Federal Reserve announced on Wednesday that it is not expecting a rate hike in 2019, citing the ongoing trade war, the Republican tax cuts, and the global economic slowdown caused by Brexit and China’s troubles as reasons for slowed US growth.
The Fed had previously expected growth to reach 2.3% from last December, however, they lowered expectations to 2.1% this week. The White House still maintains its 3.2% prediction which has little bearing on investors expectations.
Federal Reserve Chair Jerome Powell specifically said the economy is “in a good place” in a news conference on Wednesday. However, he acknowledged that growth is slower than expected and even hinted that the next Fed move might be an interest rate cut rather than a hike.