Financial-market volatility and global-growth concerns have made the Federal Reserves rate path less clear going forward, the central bank revealed in meeting minutes out Wednesday , adding that officials "could afford to be patient about further policy firming."
"These minutes are the clearest signal weve received that the Fed will slow down the rate hike pace, which is what the markets have seemed hungry for," said Mike Loewengart, head of investment strategy at E-trade. "And the fact that a few Fed officials didnt even want December's hike show which way the wind is blowing."
Officials signaled at their December meeting they would take a tentative approach to setting monetary policy, when they increased the benchmark interest rate by a quarter percentage point to between 2.25% and 2.5%, lowering its forecast from three hikes to two.
"Concerns over escalating trade tensions, global growth prospects, and the sustainability of corporate earnings growth were among the factors that appeared to contribute to a significant drop in U.S. equity prices," the minutes said.
Officials hiked four times last year and nine times since 2015.
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