Fed Keeps $85 Billion QE Pace Awaiting Signs Growth Picks Up
Source: Bloomberg
By Joshua Zumbrun and Jeff Kearns - Oct 30, 2013
The Federal Reserve decided to press on with $85 billion in monthly bond purchases, saying it needs to see more evidence that the economy will continue to improve.
The recovery in the housing sector slowed somewhat in recent months, the Federal Open Market Committee (FDTR) said today at the end of a two-day meeting in Washington. Fiscal policy is restraining economic growth.
Ben S. Bernanke is pushing unprecedented accommodation into the final months of his Fed chairmanship as he seeks to shield the four-year economic expansion from the impact of higher borrowing costs and this months partial U.S. government shutdown. The 16-day closing resulted in the furloughs of as many as 800,000 federal workers and delayed release of data the Fed says it needs to evaluate the economy.
Taking into account the extent of federal fiscal retrenchment over the past year, the committee sees the improvement in economic activity and labor market conditions since it began its asset purchase program as consistent with growing underlying strength in the broader economy, the committee said. The Fed repeated that it will await more evidence that progress will be sustained before adjusting the pace of its purchases.
Read more: http://www.bloomberg.com/news/2013-10-30/fed-keeps-85-billion-qe-pace-awaiting-signs-economy-picks-up.html
olddad56
(5,732 posts)Purveyor
(29,876 posts)Keep it up too long and when the velocity of money increases or off-shore interests stop soaking up the excess suddenly the bottom decile of households will easily be earning $80k/year.
Of course, it'll cost $7000 for an apt. and $18 for a loaf of bread. At least on Tuesday, before the afternoon price hikes kick in.