(Bloomberg) -- Credit markets are getting a second wind, thanks to a Federal Reserve that’s suddenly not as confident the economy is strong enough to weather a steady rise in interest rates.

Policy makers said on Wednesday they now expect the federal funds rate to end the year at 0.625 %, down from their 1.125 % forecast in December. The outlook for next year dropped to 1.875 % from 2.5 %. Bonds soared, with the yield on the 10-year Treasury note, a benchmark for everything from corporate debt to mortgages, plunging below 2 % in its biggest decline in more than two months.

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