Published reports said the U.S. Federal Reserve Monetary Policy 2015 has changed its position on interest rates. The fed had said in previous meetings that it will be patient before making a rate hike to kick start the economy.
Amid better economic signals which came into play recently such as fewer unemployment figures, the Federal Reserve Monetary Policy 2015 is likely to include a small rate hike, analysts said.
Interest rates have been maintained at a record low of 0% after the downturn in the economy leading to a recession in 2008.
Reports claimed that the fed has removed the word "patience" from the statement it usually makes. However, market watchers said that the fed's language implies that the Federal Reserve would not spike rates for a couple of months.
The central bank did say it would wait to see "further improvement" in the labor market ahead of raising rates.
Stocks on Wall Street increased on the news. U.S. firms stand to benefit from a delayed Federal Reserve Monetary Policy 2015 interest rate hike, since they would be able to receive credit on lower interest rates.
According to a press release for immediate release, the Federal Open Market Committee (FOMC), "suggests that economic growth has moderated somewhat. Labor market conditions have improved further, with strong job gains and a lower unemployment rate."
“A range of labor market indicators suggests that underutilization of labor resources continues to diminish. Household spending is rising moderately; declines in energy prices have boosted household purchasing power. Business fixed investment is advancing, while the recovery in the housing sector remains slow and export growth has weakened,” the FOMC added.
Voting for the FOMC monetary policy action were: Janet L. Yellen, William C. Dudley, Lael Brainard, Charles L. Evans, Stanley Fischer, Jeffrey M. Lacker, Dennis P. Lockhart, Jerome H. Powell, Daniel K. Tarullo and John C. Williams.
