U.S. markets rose sharply after minutes from the September meeting of the Federal Reserve were released. The transcript indicated that US central bankers were wary of raising rates too soon. Officials were worried markets were too focused on a rate rise happening during a specific period of time.
The minutes reveal an eagerness to assure observers that a rate rise would be linked solely to positive economic data.
The Fed has kept its benchmark federal funds rate – which determines other short-term interest rates in the U.S. economy, from car loans to mortgages – at 0% since the end of 2008, when the financial crisis hit. Now that the central bank has announced an end to its extraordinary stimulus measures – which included buying bonds to keep long-term interest rates low – focus has shifted to when it will raise the short term rate. Read more here.