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- 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/us-usa-f ed-idUSBRE98G1D620130918