NEW YORK ¨C Investors searching for clarity from a newly led U.S. Federal Reserve were disappointed on Wednesday, warning that the central bank¡¯s mixed messages on the outlook for interest rates could unsettle stocks and bonds and increase the risk of market volatility.
The Fed kept interest rates unchanged in a target range of 3.50% to 3.75%. The vote drew three dissents from the 12-member panel, leading analysts to characterize the decision as a ¡°hawkish hold¡± that leaves the door open to future rate hikes.
With U.S. President Donald Trump¡¯s new Fed chair, Kevin Warsh, abandoning the practice of holding investors¡¯ hands through forward guidance, markets have entered a new paradigm. Investors are now combing through economic data for any signal of the Fed¡¯s next move, a dynamic ?that many ?say could trigger sharper bouts of volatility.
With your current subscription plan you can comment on stories. However, before writing your first comment, please create a display name in the Profile section of your subscriber account page.