'Significant challenges lie ahead' for the Federal Reserve

'Uncertainty' surrounding inflation

At the latest Federal Reserve meeting yesterday, US officials moved to keep rates steady at 0.25% and to maintain the pace of its quantitative easing programme but signalled to markets that hikes to interest rates would come into effect from March onwards.

The move was broadly in line with expectations and some commentators were quick to reassure markets that the Fed's actions would spell good news for equities. Federal Reserve holds interest rates while...