Fed to Stick With Existing Measures (stimulus)
Source: New York Times
WASHINGTON -The Federal Reserve said Wednesday that it would continue its existing measures to stimulate the economy, but it would not expand that campaign despite the high level of unemployment and slow pace of job growth.
In a statement after a two-day meeting of its policy-making committee, the Fed said that it expected the economy to grow moderately in "coming quarters, and then to pick up gradually," a slight increase in the optimism of its forecast.
The statement said that inflation remained under control despite the recent rise in oil and gasoline prices, an increase it regards as temporary.
The central bank has held short-term interest rates near zero since late 2008, and it has sought to further reduce long-term rates through the purchase of Treasury securities and mortgage bonds. It plans to conclude its latest round of purchases in June and then maintain rates at current levels at least until late 2014.
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