The Federal Reserve dropped previous warnings about the global financial and economic risks posed to the US economy as it signalled that an increase in short-term rates may be on the table at its December meeting.
Investors were wrong-footed by the unexpectedly hawkish statement that accompanied the Fed’s decision, after many analysts predicted that the US central bank would continue to strike a cautious note on the US and global economy.
Meeting for its penultimate policy meeting in 2015, the Federal Open Market Committee said there had been a slowing in the pace of job growth, but it added that policymakers were seeing solid gains in US household spending and investment.