September 17, 2014
By CentralBankNews.info
The U.S. Federal Reserve will reduce its purchases of Treasury bonds and mortgage backed securities by another $10 billion to a total of $15 billion next month and expects to conclude its asset purchase program at its next meeting.
However, the Fed repeated its guidance that it still expects to maintain its current federal funds rate of zero to 0.25 percent for “a considerable time after the asset purchase program ends,” a statement that will surprise financial markets and economists that were expecting the Fed to alter its language.
