Fed still managed to surprise the world markets. At the end of its two-day meeting on Wednesday, the US central bank acknowledged that at the end of 2015 the US economy has lost momentum.
"At the end of last year, the pace of US economic growth slowed down," - said the Operations Committee on the Federal Open Market in a statement, noting that the situation in the labor market improved.
US stocks are not well responded to the Fed statement. Index Dow Jones, which was trading around 10 points higher after the Fed dropped by 223 points. This month, the Dow Jones and S & P 500 fell by 8% and 7% respectively.
As for the decision on the monetary policy committee of the Fed decided not to raise its key interest rate. Let's remind, only a month ago, in December, the Fed raised rates for the first time in nearly ten years.
Despite fears that the volatility of world markets at the beginning of this year will affect the pace of rate hikes, the committee noted that it continues to monitor the global economic and financial developments.
Some experts say that fluctuations in world markets and the Fed's fault. The Committee, headed by Chairman Janet Yellen, said in December that expects to raise interest rates about four times this year. Markets do not really believe such forecasts: many investors believe the Fed will raise rates only twice.
Fed Vice Chairman Stanley Fischer told CNBC in early January that the markets underestimate the determination of the Fed.
The difference between forecasts and market expectations the Fed contributed to the volatility of stock markets.According to CME Group, the probability of a rate hike in March is 38%.