Economic growth appears to be slowing
The Federal Reserve held interest rates steady and projected no rate hikes this year. Chairman Jerome Powell said that rate increases could be on hold for “some time” as the economy is slowing more than previously thought.
Contributing factors to new forecast: Growth appears to be slowing under the weight of the Trump administration’s trade war, economic slowdowns in Europe and China, and fading stimulus from the tax cuts. With that being said, Powell noted that “economical fundamentals are still very strong.”
Worth Noting: The decision to hold the federal funds rate in the range of 2.25 to 2.5 percent was unanimous, according to the NYTimes. Most officials now expect a single rate increase in 2020 and none in 2021.
Treasury yields: The yield on the 10-year U.S. Treasury note dropped to 2.52 percent – its lowest level in more than a year, according to CNBC.