The Federal Reserve decided to cut its monthly asset-purchase
program by another $10 billion to $45 billion ($25 billion of
longer-term treasury securities and $20 billion of mortgage-backed
released at the end of the two-day meeting was a little more upbeat
than the previous one, noting the pickup in economic
activity, except in labor markets.
Information received (since the last meeting) indicates that
growth in economic activity has picked up recently, after having
slowed sharply during the winter in part because of adverse weather
conditions. Labor market indicators were mixed but on balance
showed further improvemen
The Committee currently judges that there is sufficient
underlying strength in the broader economy to support ongoing
improvement in labor market conditions
The forward guidance remained unchanged: "
It likely will be appropriate to maintain the current target
range for the federal funds rate for a considerable time after the
asset purchase program ends, especially if projected inflation
continues to run below the Committee's 2% longer-run goal, and
provided that longer-term inflation expectations remain well
All nine voting members of FOMC supported the monetary action.
The Fed did not release updated economic projections nor will Janet
Yellen hold any press conference; those are done once in a quarter.
Though the move was largely expected by the markets, some analysts
were wondering whether this morning's GDP report would impact Fed's
Did the move surprise you?
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