Federal Reserve Will Continue Quantitative Easing Program

NPR

After a meeting of the Federal Open Market Committee, it will continue to buy $85 billion in bonds every month and will leave the federal funds rate at the historic rate of near zero.

Of course, when the Fed releases its statement, the markets and the media read the tea leaves. Basically nothing much changed from the Fed’s previous statement, except one word: The Fed said the country’s economic activity “expanded at a modest pace.” Previously, they had said the economy was growing at a “moderate” pace.

this means the Fed has downgraded the U.S. economy from its June assessment.

The wire service adds:

“Stronger job growth has fueled speculation that the Fed could start reducing its purchases as soon as September. But economic growth remains sluggish and unemployment high at 7.6 percent.

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