Economics
Fed Adopts ‘Patient’ Rate Stance With Balance-Sheet Flexibility
- Move follows months of Trump’s complaints Fed policy too tight
- Stocks rally, bond yields fall as markets absorb dovish turn
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The Federal Reserve signaled it’s done raising interest rates for at least a while and will be flexible in reducing its bond holdings, a sweeping pivot from its bias toward tighter monetary policy just last month.
U.S. stocks rallied, Treasury yields fell and the dollar sank as investors digested the new message from the central bank, which marked a broader shift toward sustaining the expansion -- rather than preventing any overheating -- and follows months of criticism from President Donald Trump for raising rates too much.