Stocks, bonds rally as Fed indicates no hurry on rate hike

A trader on the floor of the New York Stock Exchange watches Federal reserve Chair Janet Yellen's news conference, Wednesday, March 18, 2015. The Federal Reserve is signaling that it's edging closer to raising interest rates from record lows in light of a strengthening job market. The Fed no longer says it will be "patient" in starting to raise its benchmark rate. (AP Photo/Richard Drew) A trader on the floor of the New York Stock Exchange watches Federal reserve Chair Janet Yellen's news conference, Wednesday, March 18, 2015. The Federal Reserve is signaling that it's edging closer to raising interest rates from record lows in light of a strengthening job market. The Fed no longer says it will be "patient" in starting to raise its benchmark rate. (AP Photo/Richard Drew)

By Associated Press March 18, 2015 1 min read

NEW YORK (AP) – Stocks and bonds are rallying after the Federal Reserve indicated that it’s not in a hurry to raise interest rates.

At the end of a two-day meeting Wednesday, the Fed also cut its forecasts for economic growth through 2017 and said that it needs to see more improvement in the job market and higher inflation before it raises rates.

The Fed has kept interest rates extremely low for six years, which has helped drive stock and bond prices higher by making borrowing cheap.

The Dow Jones industrial average jumped 227 points, or 1.3 percent, to 18,076.

The Standard & Poor’s 500 rose 25 points, or 1.2 percent, to 2,099. The Nasdaq climbed 45 points, or 0.9 percent, to 4,982.