FOMC decides to continue purchasing

RICHMOND

The Federal Open Market Committee (FOMC), decided to continue purchasing additional agency mortgage-backed securities at a pace of $40 billion per month. The Committee released a statement after the meeting saying that it expects a highly accommodative stance of monetary policy to remain appropriate for a considerable period after the economic recovery strengthens, and that it currently anticipates that exceptionally low levels for the federal funds rate are likely to be warranted at least through mid-2015. "I dissented for the same reasons that I did at the September meeting. I opposed continuing additional asset purchases. Further monetary stimulus now is unlikely to result in a discernible improvement in growth, but if it does, it's also likely to cause an unwanted increase in inflation.