Fed reiterates ultra-accommodative policy stance - Angel Broking

In his testimony to the Congress, the Federal Reserve Chairman Ben Bernanke reiterated that quantitative easing is expected to stay on course. The Fed is committed to purchasing USD85bn per month (USD45bn in treasury securities and USD40bn in mortgage-backed securities) and pursuing an ultra-accommodative monetary policy stance until the outlook for employment improves and price stability is maintained at or below its 2% medium-term objective. Bernanke emphasized that asset purchases depend on economic and financial developments, 'they are by no means on a preset course.' The Fed funds rate is already at 0.25% and is likely to remain at such low levels and growth-supportive at least as long as unemployment reaches 6.5% and inflationary expectations remain anchored.

Source : Equity Bulls

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