FX.co ★ Federal Reserve System comments on U.S. economy

On Wednesday, after the two-day meeting, the Federal Reserve System presented an official statement. The work of the Federal Open Market Committee was followed by the leading analysts from all over the world. This document forecasts moderate development of the U.S. economy in the near future. It also mentions that the U.S. needs to provide price stability and maximum employment. The Committee announced that the moderate economic growth will require implementing certain programs and reducing the jobless rate. The unemployment is the main issue not only for the analysts, but also for the U.S. citizens. The specialists emphasized that the U.S. economic outlook may be downgraded. At this meeting, the officials also discussed inflation and noted that it is likely to stay at or below 2% in the medium term.
The Committee came to the decision to continue the monthly practice of purchasing securities backed by mortgage loans totaling $40 bln, and also the long-term U.S. Treasury bonds totaling $45 bln per month.
The FRS pointed out that most of these decisions will help to reduce the pressure on the interest rates in the long term and also to support mortgage markets by making the conditions more favorable.
One of the main achievements of this meeting is the decision about leaving the interbank lending rate at the record low of 0 %-0.25%. This rate has been flat since the end of 2008.
The document says that the Federal Reserve System will pay special attention to the economic and financial situation development in the coming months.