Posted by: youngragingbull | May 1, 2013

Federal Reserve stands pat on policies

The Federal Reserve on Wednesday kept its targeted interest rate and its bond purchase program the same, as the central bank for the first time formally stated that it could increase or decrease bond buying from the current pace “as the outlook for the labor market or inflation changes.”

The Fed also said the economy is expanding at a “moderate” pace with inflation running “somewhat below” the desired longer-run objective.

In an 11-to-1 vote, the Fed kept its Fed fund target rate between 0% and 0.25%, its program of buying $40 billion per month of mortgage-backed securities and $45 billion of Treasury securities, and its plan to keep rates low at least so long as unemployment is above 6.5%.

Kansas City Fed President Esther George again was the sole dissent, on concerns over the risks to future imbalances.

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