How to read Fed policy action? Prashant Tandon, of Listed Investments Client Advisory, Waterfield Advisors answers

In line with market expectations, the US Federal Reserve left rates unchanged for a fourth straight meeting. However, there was a slight change in tone from the December meeting with the statement mentioning that the Fed does not expect rate cuts until it sees “greater confidence that inflation is moving sustainably toward 2% percent”.

The biggest worry for the Fed is not to repeat the same mistakes of the 1970s when flip-flopping in interest rate decisions took the inflation spectre above its first peak. We do not see a major impact of the current policy decision on financial markets with 10-year yields closing lower on the day and equity markets being driven by earnings expectations rather than immediate Fed policy.