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No Rate Hike Coming as Fed Phases Out Stimulus Plan
The Federal Reserve confirms it will end its bond-buying stimulus program by the end of October but says that "considerable time" will pass before it raises interest rates.
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The Federal Reserve confirms it will end its bond-buying stimulus program by the end of October but says that "considerable time" will pass before it raises interest rates.
The news pushed the Dow Jones Industrial Average up nearly 25 points on Wednesday to a record 17,156.
Fed Chair Janet Yellen emphasizes there is no specific timetable for raising rates. Analysts note that America's economic expansion has lagged the central bank's forecasts, forcing the Fed to proceed cautiously. The bank's overnight lending rate has been at near zero since the end of 2008.
Some fret that the Fed again lowered its growth forecast, this time predicting growth below 3% through 2017. The central bank's tepid assessment describes America's economic activity as "moderate" and considers the labor market "somewhat" improved.
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