This week, the Federal Reserve announced it will not raise rates again in 2019, prompting 10-year Treasury yields to drop to a one-year low.
Previously, the Federal Open Market Committee anticipated two rate hikes for the year after four increases in 2018. After the most recent meeting, FOMC stated it would be "patient" before implementing any further hikes. CNBC reports that the move comes with downwardly revised expectations in GDP growth and inflation, and an upwardly revised unemployment rate outlook.
For a central bank not so long ago intent on normalizing policy from its financial crisis-era accommodation levels, the developments at this week's meeting represent a striking change in direction.
The Fed had held its benchmark rate near zero for seven years as it looked to stimulate the housing market and overall economic activity. Its low-rate programs coincided with the longest bull market on record for stocks.
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