Fed Keeps Policy on Hold, Says Recovery too Slow
Reuters - The Federal Reserve said on Tuesday the economic recovery was still too slow to bring down unemployment, reaffirming its commitment to purchase $600 billion in bonds to stimulate growth and create jobs.
In a statement that contained little acknowledgment of a recent uptick in the economic data but focused squarely on high unemployment, the Fed characterized the U.S. expansion as “continuing,” a modest upgrade from its November description of the recovery as “slow.”
While the meeting likely involved some reevaluation of the economic outlook to account for the effects of a proposed extension of tax cuts, the Fed noted measures of underlying inflation had continued to trend lower since its last meeting.
“The economic recovery is continuing, though at a rate that has been insufficient to bring down unemployment,” the Fed said in a statement at the conclusion of a one-day meeting.