Fed Leaves Interest Rates Unchanged

March 20, 2019 04:32 PM
 
During the March Federal Open Market Committee, the Federal Reserve decided to leave its benchmark funds rate unchanged, in a range of 2.25% to 2.5%.

During the March Federal Open Market Committee, the Federal Reserve decided to leave its benchmark funds rate unchanged, in a range of 2.25% to 2.5%. The unanimous decision is in sharp contract from December’s projections.

 

In, December committee members estimated two rate hikes would be appropriate in 2019. But it now appears there will be none. That is, unless conditions change significantly, committee chairman Jeremey Powell said.

 

The committee cited slower economic growth and declining inflation as the reason for leaving rates unchanged, in its post-meeting statement.

 

This move was a clear indication the committee doesn’t want to let the free markets trade, but instead to manipulate it, according to Todd Horwitz of BubbaTrading.com.

 

“This is almost a joke, even the way [Powell’s] explaining it. The honest truth is they don’t have a clue and they want to create debt,” Horwitz told AgriTalk host Chip Flory. “I don’t know how they say there’s no inflation. Every commodity is higher except for grains, is that not inflation?”

 

Horwitz said the move should be good for commodities and grains, in the short-term, but he doesn’t believe it’s a good move for the overall health and well-being of the economy.

 

Following the announcement, the 10-year Treasury yield fell to their lowest level in a year.

 

Back to news


Comments

 
Spell Check

No comments have been posted to this News Article

Corn College TV Education Series

2014_Team_Shot_with_Logo

Get nearly 8 hours of educational video with Farm Journal's top agronomists. Produced in the field and neatly organized by topic, from spring prep to post-harvest. Order now!

Markets

Market Data provided by QTInfo.com
Brought to you by Beyer
Close