FOMC de­cides to continue pur­chas­ing

The Pak Banker - - Front Page -

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.

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