Getty Images/Spencer Platt
Traders work on the floor of the New York Stock Exchange (NYSE) as the Federal Reserve Board Chairman Jerome Powell holds a news conference on December 19, 2018 in New York City
- The Federal Reserve left its benchmark interest rate unchanged Wednesday, as expected.
- But its language on future monetary policy was more dovish than market watchers had anticipated.
- Expectations for hikes this year have fallen, and some are even predicting a rate cut in 2020.
The Federal Reserve held its benchmark interest rate steady at a target range of between 2.25% and 2.5% on Wednesday and signaled that the end of hikes could be in sight. Also announcing plans to adjust the pace of balance-sheet reduction, the meeting was received as more dovish than expected.
Stocks rallied following the announcement, with the major US indexes ending between 1% and 2% higher. Treasury yields were lower, meanwhile, and the dollar fell against a basket of peers.
Here's what Wall Street is saying about the meeting.