FOMC drops “patient”, says unlikely to raise rates in April

FXStreet (Córdoba) - As expected, the Federal Reserve decided to keep the target range for the federal funds rate at its record low of 0-0.25% removed the word “patient” from its language. Instead the Fed said it would raise rates when it is reasonably confident that low-inflation is on track to return to its 2% target and as long as the job market keeps improving.

“This change in the forward guidance does not indicate that the Committee has decided on the timing of the initial increase in the target range”, read the statement.

The Federal Open Monetary Committee also said it is unlikely to raise rates at the April meeting.

At the same time, the Fed assured that when it decides to begin to remove policy accommodation, it will take a balanced approach. “The Committee currently anticipates that, even after employment and inflation are near mandate-consistent levels, economic conditions may, for some time, warrant keeping the target federal funds rate below levels the Committee views as normal in the longer run”.

Economic projections

The Fed also published its economic projections. 15 of 17 Fed officials said they expected to start moving rates up this year, but they revised down their rates estimates. They also revised down forecasts for growth and inflation.

Federal Reserve Chair Janet Yellen will address the press at 18:30 GMT.