Fed set to signal no expectation of rate hikes anytime soon

WASHINGTON – The message the Federal Reserve is poised to send when its policy meeting ends this week is a soothing one. It reflects a shift in tone since the start of the year in the face of a slowdown in the United States and abroad, persistently tame inflation and a nervous stock market. The shift toward a more hands-off Fed has pleased investors and encouraged the view that the central bank is done raising rates for now and might even act this year to support rather than restrain the economy.

In a statement Wednesday, in updated economic forecasts and in a news conference by Chairman Jerome Powell, the Fed will likely note that while the economy is on firm footing, it faces risks from slowing growth and trade conflicts.