Federal Reserve moves a step closer to rate hike with hawkish statement

A hawkish statement from the Federal Reserve has been perceived by markets as another step towards an interest rate rise, although it is unlikely to come before April 2015.

A statement from the Federal Open Market Committee (FOMC) following its two-day policy meeting took pains to reassure markets it is in no rush to hike interest rates, despite recent positive economic news, including stronger job growth and plunging oil prices. Instead it noted: "The Committee judges that it can be patient in beginning to normalise the stance of monetary policy." However, the change in tone in the overall statement suggests rate raises could be closer than previously indicated. Fed chair Janet Yellen (pictured), speaking after the meeting, said: "This new language...