By WSJ City
Federal Reserve officials held their benchmark interest rate steady on Wednesday following a two-day policy meeting, but hinted they would cut rates in the months ahead if the economic outlook weakens.
--- The Rate Decision: Fed officials held Fed funds steady at 2.25-2.50%, as expected.
--- US stocks rose after the central bank concluded its policy meeting.
--- The statement instead included language that highlighted risks to economic growth.
--- The statement says the Fed "will act as appropriate" to sustain the country's economic expansion.
--- Bond yields slid. The yield on the 10-year U.S. Treasury fell to 2.023%.
What Was Said
Fed Chairman Jerome Powell began his press conference by voicing his commitment to the Fed's main goals: a strong labour market and stable prices. Powell pushed back against the idea of being demoted, which President Trump raised earlier this week.
"I think the law is clear that I have a four-year term and I fully intend to serve it."
Fed Chairman Jerome Powell
Powell also said that sealing a deal with China on a new trade pact would not necessarily remove the possibility of future interest-rate cuts.
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(END) Dow Jones Newswires
June 20, 2019 04:00 ET (08:00 GMT)
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