Fed changes gears, holds interest rates steady

The Federal Reserve said Wednesday it did not plan to raise interest rates in the near future, signaling it expects economic growth in the United States to slow down from its recent breakneck speed. European stock markets rose some after the news that interest rates in the United States would remain steady, as did markets in China, India, and Japan. The U.S. Dow Jones Industrial Average saw a slight increase Thursday morning.

Interest rates have gone up steadily the past two years, but the U.S.-China trade war has raised fears of slowing growth and sales. China’s economic growth sank to a three-decade low in 2018 after the United States raised tariffs and trading decelerated in the final quarter of the year. The 35-day partial government shutdown is also expected to slow down the U.S. economy in the first quarter of this year. The ongoing U.S.-China trade talks are also expected to affect the market this week.