Federal Reserve indicates interest rate hike arriving in March

With both volatile markets and significant inflation in the mix, the Federal Reserve on Wednesday indicated that it may soon raise interest rates for the first time in more than three years.

"With inflation well above 2 percent and a strong labor market, the committee expects it will soon be appropriate to raise the target range for the federal funds rate," the body said in a highly anticipated statement following its meeting. 

The Federal Open Market Committee added that the central bank's monthly bond-buying will proceed at just $30 billion in February, signaling that the program could come to an end in March as the interest rate increases.

The Dow jumped 400 points immediately following the Fed's announcement Wednesday. Markets had been anxiously awaiting a decision by the Fed as they endured another tumultuous trading week.