U.S. stocks climbed, erasing an earlier loss, after the Federal Reserve said data suggest economic growth has moderated, fueling speculation it won’t be in a rush to raise interest rates.

The Standard & Poor’s 500 Index rallied 1.2 percent to 2,099.26 at 4 p.m. in New York. The Russell 2000 Index advanced 0.8 percent to a record. The Nasdaq Composite added 0.9 percent, and briefly climbed back above 5,000.

The central bank said higher interest rates in April are unlikely and it won’t tighten until it is “reasonably confident” inflation will return to its target and the labor market improves further. The Fed also dropped an assurance it will be “patient” in raising interest rates.

Officials lowered their median estimate for the federal funds rate at the end of 2015 to 0.625 percent, compared with 1.125 percent in December forecasts. The median estimate for the end of 2016 declined to 1.875 percent from 2.5 percent, according to the Federal Open Market Committee’s quarterly Summary of Economic Projections.

Source : Bloomberg