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- Federal Reserve will be "patient" before to raise its interest rate
Federal Reserve will be "patient" before to raise its interest rate
The Federal Reserve released its interest rate decision on Wednesday. The Fed kept its interest rate unchanged. The central bank changed its guidance language. It said that it will be "patient" before to raise its interest rate.
For the past six months, the Fed said that interest rates would remain unchanged for a "considerable time" after the end of bond-buying programme. The central bank maintained this phrase, but added that it can start to hike its interest rate sooner than expected. Improving inflation and employment are necessary for interest rate hike, the Fed pointed out.
The Fed Chair Janet Yellen said at the press conference that the Fed's position has not changed despite different views when to raise interest rates. Yellen noted that the Fed was unlikely to hike its interest rates for the "next couple of meetings".
The central bank said that the economy is expanding at a moderate pace and household and business spending were increasing moderately.
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