What concerns prompted the Federal Reserve to signal patience?

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The Federal Reserve Signalled Patience Due to Broad Economic Concerns

The Federal Reserve indicated a patient approach to further interest rate increases this year, a move that helped boost US stock markets. This shift in monetary policy signalling occurred against a backdrop of growing investor anxiety regarding the global economic outlook, exacerbated by the impact of the US-China trade conflict on major American corporations.
Investor Worries About Global Economic Slowdown

In recent months, a notable increase in investor concern has centred on the health of the global economy. This apprehension is not unfounded, as evidenced by the financial reports of prominent US companies. Businesses such as Apple, Intel Corp, and Caterpillar Inc. have publicly acknowledged feeling the effects of China's decelerating economic expansion, a situation directly linked to the ongoing trade dispute between the United States and China.
Impact of Trade Conflict on Corporate Earnings

The slowdown in China's economy, significantly affected by the trade conflict with the United States, has translated into tangible difficulties for American businesses. Profit warnings from key US companies had previously triggered declines in stock markets, signalling that the repercussions of this economic deceleration were more substantial than initially anticipated. The Federal Reserve's subsequent communication of patience on rate hikes, alongside better-than-expected results from companies like Apple, helped to temper these market fears.
Federal Reserve's Policy Adjustments

The Federal Reserve's decision to hold interest rates steady was widely anticipated. However, the central bank's revised statement removed language that projected "some further" rate hikes would be appropriate in 2019. Furthermore, the Fed stated it could adjust the pace of its balance sheet reduction in response to economic and financial developments, a move that many investors believe could positively influence economic growth. This flexibility in monetary policy was seen as a reassuring signal to the market.

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What concerns prompted the Federal Reserve to signal patience?

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