Investors see a roughly 47% chance of a rate rise by the end of the year, according to Fed-fund futures tracked by CME Group.
Instead Fed Chair Janet Yellen took the opportunity to discuss the bank's bond buying programme, signalling that it plans to begin reducing its massive bond portfolio in the near future as its seeks to normalise its balance sheet.
The United States Federal Reserve is expected to leave its policy interest rates unchanged at its July 25-26 policy meeting. That's down from a 1.9 percent year-over-year increase in January.
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Neel Kashkari, president of the Federal Reserve Bank of Minneapolis, has been most vocal in warning that the Fed may be raising interest rates too quickly.
The U.S. Treasury is set to auction $28 billion in seven-year notes, the final of three offerings this week.
The dollar index, which measures the greenback against six major peers, was down 0.33 percent at 93.739 in late trading.
However, Mr Kroszner said, "Probably they will want to see a little more evidence before taking the next step on the interest rate increases".
Approaching midday in London, the benchmark FTSE 100 index was up 0.6 percent compared with the close on Tuesday, as traders digested a slight improvement to British quarterly growth.
Taiwan's index climbed 0.9 percent after electronics maker Foxconn announced a $10 billion investment in Wisconsin that is expected to create 3,000 jobs. The Dow Jones industrial average gained 0.5 percent to 21,711.01, and the Nasdaq composite rose 0.2 percent to 6,422.75.
The Fed bought trillions of dollars of securities to lower long-term borrowing costs after its policy rate was cut to zero in December 2008.
Prices had surged in recent days, with Brent crude breaching the $50 mark and U.S. benchmark West Texas Intermediate rising to eight-week highs above $48.