“An ounce of prevention is worth a pound of cure” and the Federal Reserve chairwoman, Janet Yellen has been rightly following the saying, as she and her policy-making committee voted to keep the benchmark interest rate unchanged at least for another month. Market experts cited that the overseas turmoil, derailment of the Chinese economy and the descending prices of crude oil and commodities have rattled investors worldwide, and the decision not to go for a rate hike seems a wise one in the given scenario.

So, the federal funds rate is left untouched at 0.25% to 0.50% for now, providing the stock market with the much-needed impetus. The major indices ended trading in the green yesterday. The Dow Jones Industrial Average climbed 74.23 points, or 0.4% to 17,325.76, while Nasdaq Composite rose 35.30 points or 0.8% to 4,763.97. The S&P 500 advanced 11.29 points or 0.6% to 2,027.22.

However, the policy makers hinted that they have adopted a cautious stance given the current situation prevailing in the broader economy, but plans for a rate hike remain in the cards. Last December, the Fed had planned up to a four quarter-point rise in interest rate in 2016. However, the financial mayhem beyond the borders compelled it to retreat from its plan, and adopt a more steady and meticulous approach. Market pundits now expect two quarter-point rate hikes by the end of the year.

The Fed still remains cautiously optimistic about the U.S. economy and as the situation improves worldwide, the U.S. will be ready to lead the squad. The economy is not in bad shape as some of the risk-averse investors perceive. The employment picture is good enough to clear the way and inflation is crawling toward the desired level.

The Fed now anticipates the U.S. economy to expand at a pace of 2.2% this year, marginally lower than 2.4% projected earlier, thanks to the recent turbulence. On the other hand, inflation is likely to hover around 1.2% by the end of the year, falling shy of the Fed’s target of 2%. The unemployment rate, which was 4.9% in February, is estimated to be 4.7% by the end of this year, 4.6% by 2017 and 4.5% by 2018.