Is the Fed keeping steady or moving too slow?

Investors are getting mixed signals

Jerome Powell.
(Image credit: Alex Wong/Getty Images)

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The Federal Reserve said last week it wouldn't raise interest rates, said Kate Marino and Sam Ho at Axios — and it still sent a shock through the markets. The message coming out of the central bank's quarterly meeting was there would be "no change to anything." Yet investors eagerly parsed the Fed's 'dot plot,' a graph that tallies where Fed policymakers expect the rate it charges banks to borrow money to be at the end of 2021, 2022, and 2023. The new survey shows more of the Fed's members expect that Fed funds rate, currently very near zero, to be hiked next year. The mixed signals left investors simultaneously "relieved the Fed may act to keep the market from getting (more) overheated, and skittish about the pending removal of the punch bowl."

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