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Fed FOMC Keeps QE and Rate Intact

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The US Federal Reserve has kept its $85bn-a-month bond buying in place, in an effort to keep borrowing costs low and bolster the economy.

The central bank’s rate-setting Federal Open Market Committee also kept its key interest rate at zero to 0.25%.

It said unemployment remained too high for a change in its quantitative easing policy.

The US economy rebounded in the first quarter to grow by 2.5%, but was still below expectations.

The Federal Reserve uses quantitative easing, a policy of buying bonds, to increase the money supply and improve liquidity in the financial system in the hope of sparking economic growth and supporting employment.

via BBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza

@alfonso_forex

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