Fed Stops Holding Market's Hand

Updated from 3:10 p.m. EST

The Federal Reserve left interest rates unchanged Wednesday but tweaked its policy statement by saying it would be "patient" before embarking on a rate hike.

The central bank's statement closely mimicked the one it issued in December and continued to balance positive comments about the economy with caution about the low level of inflation and slack resource use. But the Fed did make one crucial change in dropping its commitment to keep rates on hold for a "considerable period."

"I think sooner or later the Fed would have had to abandon that term considerable period if only to prime the financial markets for the eventual need to more closely align the federal funds rate with a livelier pace of economic activity," said John Lonski, senor economist at Moody's Investors Service. "But by no means does this particular statement imply that the Fed is on the verge of lifting the federal funds rate." ...