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Fed Signals No Rate Increase
The Federal Reserve appears determined not to modify its zero-percent short-term interest rate anytime soon.
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The Federal Reserve appears determined not to modify its zero-percent short-term interest rate anytime soon.
Low interest rates have driven investors to seek profit in the stock market. Minutes of the central bank's September meeting reveal concern that imposing a schedule of rate hikes would instantly "tighten" financial conditions.
Instead, Fed Chair Janet Yellen has said any increase will come only when favorable measures of employment rates and economic growth justify them. Affirmation of that policy on Wednesday prompted a surge in stock indexes, including a 274-point gain in the Dow Jones Industrial Average.
The Fed cites the strengthening dollar and indications of weakening growth in foreign economies as additional justification for keeping interest rates low. Analysts predict the first rate increase by the central bank won't come until at least mid-2015.
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