The Federal Open Market Committee (FOMC) trims its holding of mortgage backed securities and treasury securities by $ 5 billion a month. Mortgage backed securities will continue to be added at a pace of $ 5 billion a month while the longer term treasury securities are to be added at $ 10 billion a month.
"The Committee's sizable and still-increasing holdings of longer-term securities should maintain downward pressure on longer-term interest rates, support mortgage markets, and help to make broader financial conditions more accommodative, which in turn should promote a stronger economic recovery and help to ensure that inflation, over time, is at the rate most consistent with the Committee's dual mandate."
Other highlights include:
- Labour market conditions improved slightly.
- Unemployment rate is little changed and there remains significant underutilisation of labour resources.
- Moderate rising of household spending.
- Increase in business fixed investment.
- Housing sector recovery remains slow.
- Fiscal policy is restraining economic growth.
The full statement can be obtained from the Federal Reserve.
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