Stocks, bonds rise after Fed indicates no hurry on first rate increase in nearly a decade

Trader Edward McCarthy works on the floor of the New York Stock Exchange, Wednesday, March 18, 2015. Stocks are falling for the second day in a row as traders try to guess when U.S. interest rates will rise. (AP Photo/Richard Drew) (The Associated Press)

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Jason Harper, left, works with fellow traders on the floor of the New York Stock Exchange, Wednesday, March 18, 2015. Stocks are falling for the second day in a row as traders try to guess when U.S. interest rates will rise. (AP Photo/Richard Drew) (The Associated Press)

Trader Thomas Kay works on the floor of the New York Stock Exchange, Wednesday, March 18, 2015. Stocks are falling for the second day in a row as traders try to guess when U.S. interest rates will rise. (AP Photo/Richard Drew) (The Associated Press)

NEW YORK – Stocks are rallying after the Federal Reserve indicated that it's not in a hurry to raise interest rates.

In a statement released at the end of a two-day policy meeting Wednesday, the Fed forecast that the U.S. unemployment rate can fall further without spurring inflation.

The Dow Jones industrial average jumped after the Fed news. The Dow was up 145 points, or 1.4 percent, at 17,990 as of 2:15 p.m., fifteen minutes after the Fed's statement was released. It was down 115 points just before.

Treasurys also rallied, pushing the yield on the 10-year note below 2 percent. The dollar dropped against the euro.