Fed minutes show no rush to raise interest rates

The number of Federal Reserve officials leaning toward keeping rates at zero "for a longer time" was higher than that of those who wanted to raise interest rates.

Minutes from the Fed January meeting were released on Wednesday and showed that "many" on the Fed committee said a premature rate increase could be detrimental for the recovery, while "several" believed a later move could lead to high inflation.

According to the minutes, Fed officials seem to be highly concerned about dropping the guidance that the US central bank can adopt a "patient" approach as far as its next move on interest rates is concerned.

Many Fed officials worried that once the term "patient" is scrapped, markets will assume the Fed is set to move on "an unduly narrow range of dates," which could lead to "undesirably tight" financial conditions".