Stocks Soar After Fed Hints Interest Rates May Rise, But Slowly

Rates will go up, but not by much and not very quickly.

"We consider it unlikely that economic conditions will warrant an increase in the target range at the April meeting, such an increase could be warranted at any later meeting, depending on how the economy evolves. In particular, this change does not mean that an increase will necessarily occur in June, although we can't rule that out," she said in a press conference today following the Fed’s statement release.

"As we noted in our statement, the decision to raise the target range will depend on our assessment of realized and expected progress toward our objectives of maximum employment and 2 percent inflation."

When asked what would give them confidence to increase rates, Yellen said wage growth is not a necessary condition. They would like to see it but not a necessary condition.

The Fed has kept its key short-term rate near zero since late 2008 to bolster the economy after a devastating financial crisis and recession. In its statement, the Fed noted that the economy, which it previously said was growing solidly, has "moderated somewhat," the Associated Press reported

The Associated Press contributed to this report.