In a statement released at the end of a two-day policy meeting Wednesday, the Fed forecast that the U.S. unemployment rate can fall further without spurring inflation.
The Dow Jones industrial average jumped after the Fed news. The Dow was up 145 points, or 1.4 per cent, at 17,990 as of 2:15 p.m., fifteen minutes after the Fed's statement was released. It was down 115 points just before.
Treasurys also rallied, pushing the yield on the 10-year note below 2 per cent. The dollar dropped against the euro.