Fed keeps policy, stance unchanged

FXstreet.com (Córdoba) - As expected, the Federal Open Market Committee decided to keep its monetary policy unchanged on Wednesday, as it will continue to buy $85 billion a month in mortgage bonds and Treasurys until it sees substantial labor market improvement.

"In particular, the Committee decided to keep the target range for the federal funds rate at 0 to 1/4 percent and currently anticipates that this exceptionally low range for the federal funds rate will be appropriate at least as long as the unemployment rate remains above 6-1/2 percent, inflation between one and two years ahead is projected to be no more than a half percentage point above the Committee's 2 percent longer-run goal, and longer-term inflation expectations continue to be well anchored", the Fed reiterated Wednesday.

The Federal Reserve said that even though strains in global financial markets have eased somewhat, the committee continues to see downside risks to the economic outlook.

The vote was 11 to 1. Kansas City Fed president Esther George dissented, saying the Fed's loose policy stance could lead to financial imbalances and higher inflation.