The Federal Reserve said it will expand its holdings of long-term securities with open-ended purchases of $40 billion of mortgage debt a month in a bid to boost growth and reduce unemployment.
â€œIf the outlook for the labor market does not improve substantially, the committee will continue its purchases of agency mortgage-backed securities, undertake additional asset purchases and employ its other policy tools as appropriate,â€ the Federal Open Market Committee said today in a statement at the end of a two-day meeting in Washington.
The FOMC said it would likely hold the federal funds rate near zero â€œat least through mid-2015.â€ Since January, the Fed had said the rate was likely to stay low at least through late 2014. The Fed said â€œa highly accommodative stance of monetary policy will remain appropriate for a considerable time after the economic recovery strengthens.â€
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