The Fed is putting on hold rising interest rates and patience

The Federal Reserve said it would not raise interest rates any time soon, marking a sharp turnaround from earlier statements suggesting a gradual rate hike.

The US central bank has promised to be "patient" because of moderate inflation and recent economic "cross currents".

He made his statement after the Fed meeting in January, where he kept interest rates unchanged, as expected.

Markets, worried about rising rates, made the headlines.

The Fed has been slowly raising rates since 2015, as a stronger US economy reduced the need for extremely low rates set in place during the financial crisis.

But Jerome "Jay" Powell, chairman of the Federal Reserve, said the changes in recent months warranted a more cautious approach.

"We see these uncertainties," he said at a press conference in Washington, highlighting the economic slowdown in Europe and China, the recent closure of the US government and the possibility of a tough Brexit.

"We can afford to wait."

Analysis by Andrew Walker, Economic Correspondent of BBC World Service:

No policy changes on the part of the Fed, but there are revealing changes in the statement compared to what they said in December.

The suggestion that further interest rate increases will be consistent with achieving their economic objectives has disappeared, along with the view that the risks to the economic outlook are balanced.

Inflationary pressures are now perceived to be mitigated and the Fed has said it will be patient in its interest rate decisions.

The changes all go in the same direction: a central bank more wary of the economic outlook in terms of growth and less worried about the risks of a much higher inflation.

This is not to say that the Fed is suggesting that a recession is an imminent danger.

He still considers that sustained growth is the most likely route for the economy.

But there is what Fed Chairman Jerome Powell has called cross currents, such as trade tensions with China, which suggest that the risks of a less favorable outcome are heightened.

However, Mr. Powell objected to the request if that marked the end of the rate hikes.

"The length of this period will depend entirely on the incoming data and their implications for the prospects," he said.

The US central bank also provided more details about its intention to reduce its portfolio of bonds and mortgage-backed securities.

The Fed said it would maintain a "sufficient" reserve of reserves and could adjust the pace of sales if the situation deteriorated.