The Federal Reserve's projections show that policymakers do not expect inflation to hit that target until the end of 2023.
“The Fed is now more dovish, by a long shot, than it has ever been,” said Stephen Stanley, chief economist at Amherst Pierpont. Dovish means keeping borrowing costs low to support more hiring.
On Wall Street, stocks initially got a short boost from the Fed’s actions before turning lower. The S&P 500 fell 0.5 percent. Still, some market analysts liked what they heard from the Fed.
“A better economy and a dovish Fed, that is a nice combo,” said Ryan Detrick, chief market strategist for LPL Financial.-AP