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US: The Fed reaffirms promise to keep rates low for an extended period
Wed, Nov 4 2009, 20:42 GMT
by Easy Forex Team
Easy Forex
The Fed voted unanimously to leave interest rates unchanged at today's policy meeting. The FOMC purchased only 175bln of agency debt. This was less than the expected 200bln previously announced. The reduced amount of agency debt purchases reflects limited availability.
The Fed says economic activity has picked up and household spending appears to be expanding but economic activity will remain weak for a time. Household spending is constrained by the jobs outlook and tight credit conditions. Business is still cutting back on investment. Businesses are bringing inventory in alignment with sales. Conditions in the financial markets roughly unchanged since the last meeting. The pace of job losses declining. The Fed will continue to monitor the balance sheet and will make adjustments as needed. The Fed reaffirmed its promise to keep rates low for an “extended period.”
Published on
Wed, Nov 4 2009, 20:43 GMT
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