Inflation Latest News: Fed Maintains Course on Policy

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Inflation Latest News: Fed Maintains Course on Policy

by Wochit 1:02 mins

Inflation Latest News: Fed Maintains Course on Policy

by Wochit 1:02 mins

The Federal Reserve announced no changes following the latest meeting of its policy-making committee and offered no indication how soon it might start to reduce its monthly bond purchases. The Federal Reserve says the U.S. economy is growing modestly, a downgrade from its June assessment. The Fed expects growth will pick up in the second half of the year, but the more cautious message may signal it's not ready to slow its bond purchases soon. Economic growth probably slowed sharply in the second quarter, but its pace is unlikely to change views that the Federal Reserve will start trimming bond purchases later this year. The slowdown is expected to be temporary, with an acceleration in output forecast for the rest of 2013 as the drag from higher taxes and deep budget cuts wanes.

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