NEW YORK, New York - The U.S. Federal Resreve surprised on Wednesday, following its regular two day monthly meeting on monetrary policy, by saying there would be no further interest rate rises in 2019.
Such is the state of the economy, they said.
It may be some time before the outlook for jobs and inflation calls clearly for a change in policy , Federal Resrve Chairman Jerome Powell said in a press conference following the conclusion of the meeting on Wednesday.
Policymakers said they would be 'patient' about future rate hiokes.
Patient means that we see no need to rush to judgment, Powell said.
One person who will be pleased will be President Donald Trump, who has been telling the Fed this for months, that no further hikes would be required for the foreseeable future.
The U.S. dollar was sold off sharply on the announcement. Stocks were mixed.
The euro shot higher to last trade in New York on Wednesday at 1.1415. The Japanese yen rose sharply to 110.67. The Swiss franc firmed to 0.9923, while the Canadian dollar rose to 1.3305.
The Australian dollar jumped to 0.7116, while the New Zealand dollar cruised to 0.6879.
The only currency not to join in the party was the British pound, as investors continued to fret as to the outcome of the Brexit project.
At the close of trading the Dow Jones industrials were down 141.71 points or 0.55% at 25,445.67.
The Standard and Poor's 500 slipped 8.34 points or 0.29% to 2,824.23.
The Nasdaq Composite, going against the trend, rose 5.02 points or 0.07% to 7,728.97.
In overseas markets, London's FTSE 100 declined by 0.45%. The German Dax fell by 1.57%, while the Paris-based CAC 40 declined 0.80%.
Asian bourses were mixed on Wednesday with Australian and Chinese indices trading in the red, while markets in Japan were bought up.
In Australia, the All Ordinaries closed down 24.80 points or 0.40% at 6,251.80.
The Tokyo-based Nikkei 225 advanced by 42.07 points or 0.20% to 21,608.92.
China'sShanghai finished virtually unchanged,down 0.33 of apointor 0.01% at 3,090.64.
In Hong Kong, the Hang Seng was off 145.30 points or 0.49% at 29,320.97.