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.