Federal Reserve hints at June interest rate hike with new faith in US economy

The policy-setting committee, including chair Janet Yellen, softened language regarding the global economy's impact and implied openness to raising rates

US interest rates will remain unchanged until at least June, the Federal Reserve's open market committee (FOMC) announced on Wednesday. Signaling faith in the strengthening US economy, the Fed's policy-setting committee softened its language regarding the global economy's impact and implied openness to raising interest rates in the near future.

On Wednesday, the US central bank left interest rates unchanged at 0.25% to 0.5% for a third time this year. After the Fed raised rates from near zero for the first time in almost a decade in December, it was expected to hike rates four times this year. Since then, the forecast has been adjusted to just two hikes in 2016.

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