Fed cautious on recovery, focused on joblessness

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Fed cautious on recovery, focused on joblessness


WASHINGTON (Reuters) – The Federal Reserve showed on Wednesday it was in no rush to cut short its rescue of the U.S. economy, saying high unemployment still justified its $600 billion bond-buying plan even though the economy has shown some signs of improvement.

In a statement that was a bit more upbeat than after its meeting in December, the Fed acknowledged for the first time a rise in commodity prices that has fueled global inflation, but signaled it would not throw the U.S. central bank off course.

The Fed noted that underlying U.S. inflation has been "trending downward," a contrast in tone with other central banks around the world worried about price growth.

"The economic recovery is continuing, though at a rate that has been insufficient to bring about a significant improvement in labor market conditions," the Fed said after a two-day policy meeting.

http://news.yahoo.com/s/nm/20110126/bs_nm/us_overnighterusa_fed


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Anyone notice inflation trending "downward" ... ??