InvestmentsJan 29 2015

US Federal Reserve confirms patience with rate hike

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US Federal Reserve confirms patience with rate hike

The US Federal Reserve has stated that it remains “patient” ahead of deciding when to raise interest rates.

In the latest Federal Open Market Committee (FOMC) statement following its first meeting of the year, it reaffirmed its current 0 to 0.25 per cent target range for the federal funds rate.

The Committee said that information it had received since meeting in December suggested economic activity was expanding at a “solid pace”.

The FOMC said it will take into account a “wide range” of information in assessing when to raise rates, including “measures of labor market conditions, indicators of inflation pressures and inflation expectations, and readings on financial and international developments”.

It added: “Based on its current assessment, the Committee judges that it can be patient in beginning to normalise the stance of monetary policy.”

It is widely believed the Federal Reserve is gearing up to raise interest rates as early as June.