Explained: Why Fed moved away from rate hike and solidified a policy U-turn

Three months ago, the Fed was still signaling several rate hikes this year

The Federal Reserve on Wednesday solidified a remarkable dovish policy U-turn that cannot be properly justified by the outlook for the U.S. economy. Instead, the central bank’s decision to scale back its projected interest rate hikes this year could also reflect a combination of concerns about the international environment and financial market volatility, along with a desire to buy some insurance for the economy and minimize criticism from the White House. The exact mix will matter a great deal down the road, given that the Fed opted this week to sacrifice policy flexibility for 2019 in favor of giving bullish