Mar 19, 2015

US Fed drops ‘patient’ from rates policy statement | The Australian

THE US Federal Reserve has dropped the term “patient” from its rates outlook, opening the door for a hike as early as June.
However, the Fed has noted a mild slowdown in the rate of growth in the US economy since its last meeting in January, with the release of lower growth and inflation forecasts potentially setting the scene for further caution from policy makers.
The signal that the Fed needs to see further improvement in the job market and higher inflation before it raises interest rates from record lows appeared to catch investors by surprise, in suggesting that a rate increase might be further off than many had assumed.
Economic forecasts have led Fed members to put forward less aggressive projections for rates over the coming 12 months, a sign that rate moves will be slower than previously thought.

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