Federal Reserve maintains strong US stimulus
- 11 years ago
The policymakers at the Federal Reserve have concluded that the US economy’s recovery is still not strong enough for an end to stimulus measures.
So the US central bank will continue to buy $85 billion worth of bonds per month for the time being as part of moves to keep borrowing costs low for ordinary Americans.
Fed Chairman Ben Bernanke and Vice Chair Janet Yellen, who is set to succeed him, continue to focus on persistently high unemployment.
As they met we learned that US private-sector employers hired the fewest number of workers in six months in October.
The labour market has shown “some” further improvement, the Fed said, tempering its description after a recent weakening in the jobs figures.
Weaker factory output and home sales had suggested the world’s biggest economy was losing momentum even before the bitter budget battle in Washington triggered a 16-day long government shut down which dented consumer and business confidence.
So the US central bank will continue to buy $85 billion worth of bonds per month for the time being as part of moves to keep borrowing costs low for ordinary Americans.
Fed Chairman Ben Bernanke and Vice Chair Janet Yellen, who is set to succeed him, continue to focus on persistently high unemployment.
As they met we learned that US private-sector employers hired the fewest number of workers in six months in October.
The labour market has shown “some” further improvement, the Fed said, tempering its description after a recent weakening in the jobs figures.
Weaker factory output and home sales had suggested the world’s biggest economy was losing momentum even before the bitter budget battle in Washington triggered a 16-day long government shut down which dented consumer and business confidence.