The U.S. Federal Reserve renewed a pledge to keep interest rates near zero for a “considerable time” but it issued projections that suggested it may raise borrowing costs quicker than it had been thinking a few months ago.
Many economists and traders had expected the central bank to alter the rate guidance it has provided since March, given generally improving data on the economy’s performance.
But the Fed repeated its assurance that rates would stay ultra-low for a “considerable time” after a bond-buying stimulus programme wraps up. In a statement after a two-day meeting, it announced a further $10bn reduction in its monthly purchases, leaving the programme on course to close next month. Read more here.