Powell’s pivot

It was all about the Fed on Wednesday, but Trump tried to steal the spotlight by saying tariffs will stay on Chinese goods until a trade deal sticks. Here are some of the things people in markets are talking about.

The U.S. Federal Reserve surprised markets by signaling it won’t raise rates this year, saying economic growth in the U.S. has slowed. Fed officials also said they would end the drawdown of central bank bond holdings in September. Together, the moves indicate how seriously policy makers take risks to their outlook, even as the domestic economy chugs along. Treasury yields tumbled to the lowest level in more than a year and rate cut bets for 2019 ratchet higher. “Patient means that we see no need to rush to judgment,” Fed Chairman Jerome Powell said in a press conference. “It may be some time before the outlook for jobs and inflation calls clearly for a change in policy.”