Fed downplays own forecasts for interest rate rise

[WASHINGTON] The Federal Reserve played down predictions by some of its own policymakers that interest rates might rise faster than they had forecast earlier.

"Several participants noted that the increase in the median projection overstated the shift in the projections," according to minutes of the March 18-19 meeting of the Federal Open Market Committee (FOMC) released on Wednesday. Some expressed concern the rate forecasts "could be misconstrued as indicating a move by the committee to a less accommodative reaction function."

US stocks rallied the most in a month while Treasuries pared declines after the minutes eased concern about the timing of future interest-rate increases. Even after rates rise, officials said last month, they might have to be kept at levels considered below normal for longer because of tighter credit, higher savings and slower growth in potential output.