The US central bank has given a slightly more upbeat outlook on the US economic recovery, saying that the labour market is “stabilising” and business spending on equipment has “risen significantly”.
However, the Federal Reserve yesterday signalled no imminent change in its monetary policy stance, with interest rates set to remain at 0-0.25 per cent for an “extended period”.
Inflation was likely to remain subdued “for some time”, the Fed said, indicating that policymakers were not expecting to face pressure to raise rates to combat spiking prices for now. The Fed also confirmed that it would end its $1,250bn programme to buy mortgage-backed securities to help the housing market during the crisis, at the end of the month.