Long-term perspective on markets and economies

What a difference six months makes. The mostconsequential change in the global financial marketssince our last Outlook report was the U.S. Federal Reserve’s decision to stop raising interest rates. In amajor policy shift, Fed officials hit the pause buttonin January, prompting investors to conclude that the central bank will keep rates steady this year.

Other central banks around the world have echoed that dovish tone. The European Central Bank revived a previously halted stimulus plan and indicated that negative interest rates would remain in place through the end of 2019. China ramped up its stimulus efforts. And Japan, the world champion of quantitative easing, forged ahead with its massive and long-running asset purchase program.