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.
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."
At a press conference following the release, Federal Reserve President Jerome Powell said that rates were likely at their height and would begin coming down this year, but the economy has remained full of surprises.
Markets whipsawed wildly with Powell's speech and Press question and answer session. The $S&P 500 Index (.SPX.US)$ $Dow Jones Industrial Average (.DJI.US)$ and $Nasdaq Composite Index (.IXIC.US)$ jumped 0.80% upwards before dropping again. Major Mag Seven stocks fell in concert.