Fed is moving toward rate hike, but just when still unclear

WASHINGTON (AP) — The Federal Reserve took note Wednesday of a strengthening U.S. economy and appears on track to raise interest rates this year for the first time in nearly a decade.

In a statement after its latest policy meeting, the Fed noted that the job market, the housing industry and consumer spending are all improving.

"If you're an investor trying to get a clear view of what monetary policy might be going forward, there is still a great deal of uncertainty," said Carl Tannenbaum, chief economist at Northern Trust.

I can't give an ironclad promise, but I think it's clear from our summary of economic projections that we anticipate that the economy will grow, that the labor market will improve, that inflation will more back up to 2 percent.

Business investment has been hurt by a plunge in energy prices, which have caused cutbacks at energy companies.

"The global economic outlook and the value of the dollar are big uncertainties," said Sung Won Sohn, an economist at California State University, Channel Islands.

Other labor market indicators — from the number of people jobless for more than six months to the number of part-time workers who would prefer full-time jobs — remain at levels the Fed views as subpar.

The Fed wants to take care to avoid spooking investors, who are already on edge over the likelihood of a rate hike and the threat of a default by Greece's government.