The US Federal Reserve kept policy on hold and gave a more optimistic outlook for the economy, in a statement that gave no hint that further monetary easing was on its way.
In the crucial line of its regular post-meeting statement released yesterday, the ratesetting Federal Open Market Committee upgraded its expectation for the pace of growth in coming quarters to “moderate” – stronger than the “modest” speed it expected in January.
The limited changes to the statement suggest the central bank wants more evidence on the economy’s momentum before deciding whether to offer more stimulus, most likely via further quantitative easing.
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