Fed plots more gradual rate rises as global risk weighs

Now predicts two quarter point rises

The US Federal Reserve has revised its interest rate forecast to two quarter-point rises this year, down from the four hikes predicted in December 2016, bringing it closer in line with market expectations.

The announcement came as the Federal Reserve Open Market Committee (FOMC) once again voted in favour of holding interest rates at between 0.25% and 0.5% in its March meeting. In revising its forecast rate rises, the central bank flagged up risks to the US outlook from global financial and economic developments. Fed chair Janet Yellen (pictured) said a more cautious approach would "allow us to verify the labour market is continuing to strengthen despite the risks from abroad". "Such caution is appropriate given short term interest rates are still near zero, which means monetary poli...