Fed rate hike ruled out for Sept; turmoil not expected when it happens

THE Federal Reserve did not reveal when it was going to raise interest rates, but it effectively ruled out September. That was enough to give stocks a lift.

The Fed's Wednesday statement, which accompanied the expected policy directive to leave rates unchanged, was even more ambivalent than usual. Chairwoman Janet Yellen's board noted progress on the jobs recovery, calling employment trends "solid".

Taken alone, that might have been interpreted as a clear signal that the central bank was ready to act, and end the half-decade of near-zero benchmark interest rates. But the statement also noted muted inflation, hinting that the central bank was under no pressure to act in the near future.