issued new economic projections that suggested borrowing costs were likely to rise by another half of a percentage point by the end of 2023 due to a stronger-than-expected economy and a slower decline in inflation.
The rate-setting Federal Open Market Committee said that "holding the target range steady at this meeting allows the committee to assess additional information and its implications for monetary policy." It issued its unanimous policy statement at the end of its two-day meeting.falling by as much as 0.34% after the Fed statement but then regaining lost ground while Fed Chair Jerome Powell took questions from reporters. It closed up 0.24%.
"Powell is doing an excellent job walking the monetary tightrope, staying close to the center and being balanced," said Quincy Krosby, chief global strategist for LPL Financial. "He’s acknowledged that inflation is edging lower and said the skip was “prudent.” Moreover, he stressed that the Fed’s mandate is to restore “price stability,” but that the Fed is data dependent."
Krosby said it was likely that Powell's stance that bringing down inflation to the Fed's 2% trader would not "require weakening the labor market dramatically" reassured investors.