FOMC Leves Rates, Powell All But Rules Out March

The Federal Open Market Committee left the Federal Funds target rate unchanged on Wednesday. The FOMC said it would not commit to reducing interest rates before inflation moved closer to the 2% mark. But comments fromFederal Reserve President Jerome Powell threw markets off balance when he all but ruled out a March rate cut.

The Committee does not expect it will be appropriate to reduce the target range until it has gained greater confidence that inflation is moving sustainably toward two percent," the Fed released in a statement. "In addition, the Committee will continue reducing its holdings of Treasury securities and agency debt and agency mortgage-backed securities, as described in its previously announced plans."

Powell all but ruled out a March cut, and said the commitee was taking it meetying by meeting and not considering a cut yet.

"We will be looking at this meeting by meeting. Based on the meeting today, I would tell you that I don't think it is likely that the Committee will reach a level of confidence by the time of the March meeting to identify March at as the time to do that, but that is to be seen," Powell said.