*By Chloe Aiello* Markets surged on Wednesday after the Federal Reserve announced it would leave interest rates unchanged. In a statement that was released following the conclusion of the Fed's quarterly, two-day meeting, the central bank said it would maintain the target range for the federal funds rate at 2.25 to 2.5 percent. [The Federal Open Market Committee also hinted](https://www.federalreserve.gov/newsevents/pressreleases/monetary20190130a.htm) at future monetary policy, emphasizing it "will be patient" as it determines what future adjustments to make in order to support "sustained expansion of economic activity, strong labor market conditions, and inflation near the Committee's symmetric 2 percent objective." The language mimics previous comments made by Fed Chair Jerome Powell at the American Economic Association's annual meeting in Atlanta in early January. Alongside past Fed chairs Janet Yellen and Ben Bernanke, [Powell reiterated that](https://cheddar.com/videos/markets-rally-after-strong-jobs-report-powells-vow-to-be-patient-with-policy) "there is no preset path for policy," and that the Fed "will be patient as we watch to see how the economy evolves." "Back in November, December, I think the markets thought the Fed was against them. Now what they are seeing is a more responsive Fed and a much more gentle Fed in terms of handling where we are in growth," R "Ray" Wang, analyst and founder of Constellation Research told Cheddar. Conspicuously absent from the Fed's statement was language about future rate hikes. [The Fed sent markets plunging in December when it said](https://cheddar.com/videos/markets-take-sharp-turn-down-after-fed-hikes-interest-rates) it anticipated "some further gradual increases" in 2019 ー two specifically, down from the three hikes it had predicted in September. In a separate statement, the Fed also said that it would continue to normalize its balance sheet, but was prepared to alter details of the program “in light of economic and financial developments." Should the Fed decided to hike rates in 2019, Wang said he felt the markets could handle an increase or two. "I think the markets have priced in at least one rate hike ー probably not two and probably not three. So I think we are somewhere between one and two rate hikes that are being priced into the markets," he added. The tech-heavy Cheddar 50 Index, which measures the performance of Cheddar's 50 top companies ー from Apple ($AAPL) to GM ($GM) ー was up about 3.5 percent in intraday trading. Apple, Alibaba ($BABA), and Amazon ($AMZN) were the top performers, while CBS ($CBS), Walmart ($WMT), and AT&T ($T) dragged. Meanwhile, three benchmark indices were also up. The Dow Jones Industrial Average edged up 1.7 percent, or about 410 points, the S&P 500 was up about 1.4 percent and the Nasdaq surged close to 2 percent. For full interview [click here](https://cheddar.com/videos/will-fed-raise-interest-rates-again).

Share:
More In Business
Michigan Judge Sentences Walmart Shoplifters to Wash Parking Lot Cars
A Michigan judge is putting sponges in the hands of shoplifters and ordering them to wash cars in a Walmart parking lot when spring weather arrives. Genesee County Judge Jeffrey Clothier hopes the unusual form of community service discourages people from stealing from Walmart. The judge also wants to reward shoppers with free car washes. Clothier says he began ordering “Walmart wash” sentences this week for shoplifting at the store in Grand Blanc Township. He believes 75 to 100 people eventually will be ordered to wash cars this spring. Clothier says he will be washing cars alongside them when the time comes.
State Department Halts Plan to buy $400M of Armored Tesla Vehicles
The State Department had been in talks with Elon Musk’s Tesla company to buy armored electric vehicles, but the plans have been put on hold by the Trump administration after reports emerged about a potential $400 million purchase. A State Department spokesperson said the electric car company owned by Musk was the only one that expressed interest back in May 2024. The deal with Tesla was only in its planning phases but it was forecast to be the largest contract of the year. It shows how some of his wealth has come and was still expected to come from taxpayers.
Goodyear Blimp at 100: ‘Floating Piece of Americana’ Still Thriving
At 100 years old, the Goodyear Blimp is an ageless star in the sky. The 246-foot-long airship will be in the background of the Daytona 500 — flying roughly 1,500 feet above Daytona International Speedway, actually — to celebrate its greatest anniversary tour. Even though remote camera technologies are improving regularly and changing the landscape of aerial footage, the blimp continues to carve out a niche. At Daytona, with the usual 40-car field racing around a 2½-mile superspeedway, views from the blimp aptly provide the scope of the event.
Load More