FOMC officials confirmed no more rate hikes in 2019, keeping the target range of the federal funds rate at 2.25% to 2.5%, as compared to the two rate increases that were predicted as recently as December. They also decided to slow the shrinking of the central bank’s bond holdings starting in May by dropping the cap on monthly redemptions of Treasury securities to $15 billion from the current $30 billion, and stopping the drawdown at the end of September. Both these indicate the Fed’s move away from policy tightening and toward a markedly cautious stance. Markets reacted with 10-year U.S. Treasury yields falling to the lowest level in more than a year and the Fed funds futures now pricing in a 50% chance of the Fed cutting rates this year.