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Fed holds rates steady amid economic uncertainty

Posted: 1:12 PM, Jan 30, 2019
Updated: 2019-01-30 14:12:48-05

The Federal Reserve on Wednesday announced it would hold interest rates steady, another clear signal it intends to take a cautious approach in an uncertain economic environment.

Fed governors unanimously agreed at their first two-day policy-setting meeting of 2019 to keep the federal funds rates, which influences the cost of mortgages, credit cards and other borrowing, at a range of 2.25% to 2.5%.

The Fed said in a separate statement it is prepared to use a range of tools to steer the US economy, including changing its plans to normalize its balance sheet by size and composition, "if future economic conditions were to warrant a more accommodative monetary policy than can be achieved solely by reducing the federal funds rate."