Stock prices jump after Fed promises caution on interest rate hike

NEW YORK, Dec. 18 (UPI) -- Stock prices jumped after Chairwoman Janet Yellen suggested the Federal Reserve will not hike interest rates until at least April 2015.

As of 12:30 p.m. Thursday, the Standard & Poor's 500-stock index was at 2,042.82, up 1.5 percent for the day. That continued a climb that began Wednesday afternoon when the Fed issued a statement on interest rates.

The index closed Wednesday at 2,012.89, jumping 2 percent during the day.

Yellen held a news conference after a two-day Federal Reserve meeting, saying interest rates would remain at their current low level for "the next couple of meetings." She later said that meant no increase until late April.

Interest rates have remained at the current level since late 2008, with short-term rates close to zero.

The Federal Open Market Committee said in a statement Wednesday that its current assessment of the economy suggests "it can be patient in beginning to normalize the stance of monetary policy." It said interest rate increases can be delayed for a "considerable time" if inflation remains below its long-run 2 percent goal.

In its statement, the committee said its plans could change if circumstances do.

"They are trying to open up more flexibility to raise rates as needed," Ben Garber of Moody's Analytics told CNBC.