Posted by: youngragingbull | March 20, 2013

Fed sticks to QE plan, sees ‘moderate’ growth

The Federal Reserve on Wednesday used more upbeat language to describe the economy but otherwise stuck to its policies on bond buying and interest rates as well as its labor-market target.

The Fed said information since its last meeting suggests “a return to moderate economic growth following a pause late last year” though the central bank continued to see “downside risks to the economic outlook.”

The Fed stuck to its target of a federal funds rate between 0% and 0.25%, its program of buying $40 billion a month of mortgage-backed securities and $45 billion of Treasury securities, and its goal of keeping rates this low at least as long as the unemployment rate is above 6.5% so long as it doesn’t project inflation reaching 2.5%.

The decision again was by an 11-to-1 vote, with Kansas City Fed President Elizabeth Duke offering the only dissent.

Source: MW


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