Ebbing global growth and shaky financial markets threw the U.S. Federal Reserve off course in early 2016, and it took nearly a year for officials to regain confidence growth would continue and convince investors they would again raise interest rates.
Similar conditions confront Fed policymakers as they meet this week, with market skepticism about further rate hikes as deep as it was three years ago, and a stalemate over global trade, a U.S. federal government shutdown, and waning business and consumer confidence further clouding the picture.
Policymakers have been clear they plan a “patient” pause in rate hikes. The challenge for Fed chairman Jerome Powell is how much of a pause to signal without leaving the public convinced that the Fed’s current cycle of rising interest rates has come to a full stop.
Read more in Reuters.