Mubasher: The US Federal Reserve expects higher growth rates than it previously forecast, which could allow for higher interest rates, according to BBC World News.

However, some policymakers are sceptical regarding any boost whether in inflation or wages, calling for a more-patient attitude when estimating any potential rises in the rates.  

At the Fed’s meeting in January, almost all its members stated that inflation is expected to exceed the bank's 2% target in the medium term, paving the way for more rises in rates, which pushed up the US stock markets.

During the meeting, Fed officials also put into consideration the $1.5 trillion tax cut passed by the Congress in December that boosted stock markets in January, CNN Money reported.

“Fed officials noted that the economic impact of the new tax law might be somewhat larger in the near term than previously thought,” the financial news website added.

Markets tumbled later, following the end of the Fed meeting, reflecting the uncertainty dominated the economic scene.

The US central bank planned three increases in interest rates in 2018, and another two hikes in 2019. A plan which is not likely to be changed.

"The Fed is sticking to their path of three hikes, and the balance sheet will continue to get smaller," Peter Boockvar, chief investment officer at Bleakley Advisory Group, commented.