Federal Reserve remains open to interest rate hike in June

LONDON (ShareCast) - The Federal Reserve said it anticipates a rebound in the US economy after the sluggish winter months, remaining open to the possibility of an interest-rate increase as early as June. However, the latest statement following Wednesday's meeting could indicate that the central back may want to delay the move, possibly until September.

The Fed also noted sluggish US growth durting the first quarter, although it suggested that this could be transitory. While GDP and job creation cooled in the first quarter, the central bank "continues to expect that ... economic activity will expand at a moderate pace," the Fed said.

The Fed's statement and actions were approved unanimously with a 10-0 vote.

As of 19:17 the yield on the benchmark 10-year US Treasury was higher by four basis points to 2.04%.