Fed Continues Stimulus Program

At the conclusion of its two day meeting on October 30, the Federal Reserve announced it will maintain the monthly $85 million bond purchase program as part of its plan to keep long-term rates low and encourage spending and borrowing. While they have recently suggested a reduction in the monetary stimulus would be initiated in the near future, Fed policymakers decided that recent economic developments didn’t warrant a change. “Available data suggest that household spending and business fixed investment advanced, while the recovery in the housing sector slowed somewhat in recent months,” they said in a post-meeting statement. “Fiscal policy is restraining economic growth.” The Fed also again emphasized that it will keep the main short-term interest rate at a near zero level at least as long as the nation’s unemployment rate remains above 6.5 percent.


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