Fed committee statement hints at interest rate increase

Ending a pledge to remain “patient” in its plans to normalize monetary policy, the Federal Reserve has hinted at an interest rate increase that could happen as early as June, according to investors and economists.

News of the potential rate hike came from a statement issued Wednesday following a two-day meeting of the U.S. central bank’s Federal Open Market Committee.

While the Fed said a rate increase was not likely, its committee would deem a raise in federal fund rates “appropriate” when two conditions are met. Those are continued improvement in the labor market and inflation reaching 2 percent, according to Reuters.

The last time rates were raised was June 2006 when a robust housing market and economic growth pushed target rates to 5.25 percent. The current target range rate is zero to 0.25 percent, according to the statement.

Read more from Reuters.