The Federal Reserve is remaining ‘patient’ on its interest rate raising timetable, while also voicing faith that the American economy will continue improving despite low inflation and the strengthening dollar.
At the US central bank’s first policy meeting of 2015, policymakers said the US economy was expanding “at a solid pace” with strong job gains.
That signaled that the Fed remains on track with its plans to raise interest rates this year.
Falling oil prices are helping to push it further from achieving its key policy goal of raising annual inflation to 2.0 percent.
The Fed did provide a time frame for its inflation view, saying it expects inflation to rise gradually toward its target over the “medium term.”
US economic data have been mixed and futures contracts show investors betting on a greater chance of the Fed moving up rates in September or later, rather than June.