(MENAFN) The U.S. Federal Reserve has held interest rates steady while its policymakers abandoned projections for further rate hikes this year as the country's central bank marked an expected slowdown in the economy.
In a major transfer in its perspective, the Fed now expects to raise borrowing costs again through 2021, and no longer foresees the need to guard against inflation with restrictive monetary policy.
After a two-day policy meeting, the Fed also said it would slow the monthly reduction of its holdings of Treasury bonds from up to USD30 billion to up to USD15 billion beginning in May.
It said it would end its balance sheet excess in September provided the economy and money market conditions evolved as expected.
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