The Federal Reserve dropped the word "patient" from its guidance on interest rates but also scaled back expectations on how fast it will move, indicating the first rate hike might not take place until September. The bank even said an increase in rates at its April meeting "remains unlikely." In its newly reformulated statement, the Fed said it would be appropriate to raise rates once "it has seen further improvement in the labor market and is reasonably confident that inflation will move back to its 2% objective over the medium term." The vote was 10-0. The Fed's caution appeared to stem from lower expectations for the U.S., with the bank noting that "economic growth has moderated somewhat." Now the bank expects rates to rise just half as quickly as it did in December.
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