The US Federal Reserve on Wednesday retained target range for interest rates near 0 to 1/4 percent. 'It likely will be appropriate to maintain the current target range for the federal funds rate for a considerable time after the asset purchase program ends,' the Federal Open Market Committee (FOMC) said.
To support continued progress toward maximum employment and price stability, the committee reaffirmed its view that a highly accommodative stance of monetary policy remains appropriate.
When the committee decides to begin to remove policy accommodation, it will take a balanced approach consistent with its longer-run goals of maximum employment and inflation of 2 percent, the US Fed said. The committee currently anticipates that, even after employment and inflation are near mandate-consistent levels, economic conditions may, for some time, warrant keeping the target federal funds rate below levels the Committee views as normal in the longer run.
Beginning in October, the committee will add to its holdings of agency mortgage-backed securities at a pace of USD 5 billion per month rather than USD 10 billion per month, and will add to its holdings of longer-term Treasury securities at a pace of USD 10 billion per month rather than USD 15 billion per month.