Financial market were watching closing for any hints about whether the central bank is going for the hike in interest rate, but it comes out that fed reserve is not in any rush to hike the rates.
Federal Reserve Chair Janet Yellen suggested that there won’t be any rate hike in April and it is also not confirmed that in June it will start raising rates; U.S stock markets breathed a sign of relief. The stock markets rose to higher level before closing.
Policy makers left open the possibility to increase the rate aggressively this year, they noted that inflation would remain low but also lowered the central bank forecast for economic growth.
Earlier in the day, stocks were very low and gained after Fed released the statement indicating no hike in interest rate. Bonds and stocks rose, and the dollar plunged against euro.
There is no increase in the interest rates since 2008 great recession, to help economy to recover. Low rates has increased the business and made it easier to borrow and spend, this has significantly helped the stock market to soar pushing the stock indexes to record levels.