The Fed had been heavily criticized by President Trump for raising interest rates last year, which the president blamed for tanking the stock market in the final months of 2018. The central bank started unwinding its asset portfolio in 2017. The Fed had been heavily criticized by President Trump for raising interest rates last year, which the president blamed for tanking the stock market in the final months of 2018. The language in January marked a significant change from December, when the central bank was still saying that “further gradual increases” in rates would probably be necessary. On the other hand, the Fed keeps rates low to spur investment and consumer spending to drive economic expansion.

Source: Washington Post February 20, 2019 20:30 UTC