Fed Set to Go Ahead with QEII

Despite recent signals that the US economy is gaining in strength, the Federal Open Market Committee (FOMC) said it will continue to follow through on plans to inject another $600 billion into the economy through the purchase of bonds. The FOMC also confirmed it will continue to keep interest rates at the current all-time low.

“The clear message is there is no rethinking of the program, no consideration of backing off,” said Jim O’Sullivan, global chief economist at MF Global Ltd. in New York. “Arguably they downplayed what have clearly been better growth data.”

Source: Bloomberg

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