Linking ≠ endorsement. Enjoy and share:
- Fed surprises [not all], sticks to stimulus as it cuts growth outlook | Reuters
The following will come as no surprise to our regular readers:
(Reuters) – The U.S. Federal Reserve said on Wednesday that it would continue buying bonds at an $85 billion monthly pace for now, expressing concerns that a sharp rise in borrowing costs in recent months could weigh on the economy.
The decision surprised financial markets, which were braced for a modest cut in the central bank’s economic stimulus, and Fed Chairman Ben Bernanke refused to commit to a tapering of purchases later this year, as he had previously suggested.
“There is no fixed calendar schedule. I really have to emphasize that,” he told a news conference. “If the data confirm our basic outlook, if we gain more confidence in that outlook … then we could move later this year.”
That was the proper action, given our mixed economy and the Fed’s weakly worded mandate.
Read the source article … https://www.reuters.com/article/2013/09/ 18/us-usa-fed-idUSBRE98G1D620130918