The Federal Reserve has released its highly anticipated statement on how soon it plans to tighten monetary policy. It put a June interest rate rise on the table though allowed enough flexibility to move later.
The decision ends the US central bank’s pledge to be patient in normalising monetary policy. In its statement, following a two-day meeting the Fed’s policy-setting committee repeated its view that job market conditions had improved so giving its strongest hint yet that it was nearing its first rate hike since 2006.
The bank said it would move, “ when it has seen further improvement in the labor market and is reasonably confident that inflation will move back to its two percent objective over the medium-term.”
The bank had to weigh up if the American economy can hold up against collapsing oil prices and a soaring dollar.
Wall Street pared losses and the euro rose 1.069 against the dollar after the announcement.