Investing.com - The Federal Reserve on Wednesday said it was leaving its benchmark interest rate unchanged at 0.00-0.25% and added it will exercise patience when raising interest rates.
In past statements, the Fed said it would take "considerable time" to make sure recovery is underway before tightening policy.
In Wednesday's statement, the Fed left in the dovish phrase though the context of the language suggested that rate hikes are on the way but monetary authorities won't rush to act.
"Based on its current assessment, the Committee judges that it can be patient in beginning to normalize the stance of monetary policy. The Committee sees this guidance as consistent with its previous statement that it likely will be appropriate to maintain the 0 to 1/4 percent target range for the federal funds rate for a considerable time following the end of its asset purchase program in October, especially if projected inflation continues to run below the Committee's 2 percent longer-run goal, and provided that longer-term inflation expectations remain well anchored," the Fed said in its statement, referring to its monthly bond-buying stimulus programs it ended in October.
"However, if incoming information indicates faster progress toward the Committee's employment and inflation objectives than the Committee now expects, then increases in the target range for the federal funds rate are likely to occur sooner than currently anticipated. Conversely, if progress proves slower than expected, then increases in the target range are likely to occur later than currently anticipated."
Stocks rose on the news, with the Dow 30 up 1.60% at 17,341.50.
The US dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.51% at 88.51.