US Fed remains on track to lift US interest rates.

The US Fed dropped its pledge to keep interest rates on hold for a considerable time when it released its monthly statement on Wednesday. Fed Chair Janet Yellen said the US Fed would remain patient on when it raised interest rates but acknowledged that the US economy was expanding at a solid pace and Labour market conditions have improved further, with strong job gains and a lower unemployment rate. The US Fed’s inflation target is 2% and whilst it acknowledged that inflation would remain low for some time before moving higher, lower oil prices were having a positive affect on the economy.

In a first since June last year Bloomberg reports that the statement today was unanimously backed by all committee members. The US Dollar has naturally rallied on the news as upward pressure continues to build, as the Fed gets closer to its first interest rate hike since the GFC. It was only a number of years ago the US economy was a basket case. 

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