By www.CentralBankNews.info U.S. economic activity is continuing to expand at a moderate pace and the labor market has also improved further, but the Federal Reserve will “await more evidence that progress will be sustained before adjusting the pace of its purchases.”
The U.S. central bank practically repeated its statement from September, saying it would continue to purchase $85 billion worth of Treasuries and mortgage-backed securities a month to keep downward pressure on market interest rates and “reaffirmed its view that a highly accommodative stance of monetary policy will remain appropriate for a considerable time after the asset purchase programs ends and the economic recovery strengthens.”
The only change to the Fed’s statement today from last month was a reference a slowdown in the housing sector’s recovery and it repeated that fiscal policy was restraining economic growth.
The Fed, which last month surprised financial markets by continuing the size of its asset purchases, was widely expected to maintain its policy stance given the negative impact of the recent shutdown of the Federal government and the uncertainty created by the political discussions over the debt ceiling.
