The Federal Reserve Wednesday announced that it would keep interest rates near zero for "some time" until the economy generates full employment and inflation is "moderately" above the central bank's 2% target. Judging by the new economic projections released by the Fed, rates will remain on hold for several years.
Even if inflation runs at a 2% level at some point, the central bank now anticipates that it will be slow to raise rates. "This is dovish - lower rates for longer, higher equities, weaker dollar," says Jon Hill, senior fixed income strategist at BMO.