The US Federal Reserve tapered its asset purchases by another $10bn to a monthly pace of $35bn in an upbeat statement that made no concession to signs of higher inflation.
The rate-setting Federal Open Market Committee said that “economic activity has rebounded in recent months” but left its language on inflation unchanged.
Coming despite a run of stronger inflation numbers in recent months, that suggests the Fed is confident there is still spare capacity in the economy, and it can keep rates low well into 2015 without triggering inflation.
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