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30 Jul 2014
Fed cuts another $10 Bn; removes reference to unemployment rate being elevate
FXStreet (San Francisco) - The Federal Reserve decided to maintain unchanged its interest rate at 0.0/0.25% for another month in July while it continued to taper another $10 Bn dollar in its bond buying program.
In its July policy statement, the Fed removed reference to 'unemployment rate being elevated' while it affirmed the risk to labor market nearly balanced; but "there remains significant underutilization of labor resources."
Inflation has moved somewhat closer to the Fed’s longer-run objective." "Highly accommodative stance on monetary policy remains appropriate."
Key quotes:
Information received since the Federal Open Market Committee met in June indicates that growth in economic activity rebounded in the second quarter. Labor market conditions improved, with the unemployment rate declining further. However, a range of labor market indicators suggests that there remains significant underutilization of labor resources.
The Committee sees the risks to the outlook for economic activity and the labor market as nearly balanced and judges that the likelihood of inflation running persistently below 2 percent has diminished somewhat.
To support continued progress toward maximum employment and price stability, the Committee today reaffirmed its view that a highly accommodative stance of monetary policy remains appropriate. In determining how long to maintain the current 0 to 1/4 percent target range for the federal funds rate, the Committee will assess progress--both realized and expected--toward its objectives of maximum employment and 2 percent inflation.
In its July policy statement, the Fed removed reference to 'unemployment rate being elevated' while it affirmed the risk to labor market nearly balanced; but "there remains significant underutilization of labor resources."
Inflation has moved somewhat closer to the Fed’s longer-run objective." "Highly accommodative stance on monetary policy remains appropriate."
Key quotes:
Information received since the Federal Open Market Committee met in June indicates that growth in economic activity rebounded in the second quarter. Labor market conditions improved, with the unemployment rate declining further. However, a range of labor market indicators suggests that there remains significant underutilization of labor resources.
The Committee sees the risks to the outlook for economic activity and the labor market as nearly balanced and judges that the likelihood of inflation running persistently below 2 percent has diminished somewhat.
To support continued progress toward maximum employment and price stability, the Committee today reaffirmed its view that a highly accommodative stance of monetary policy remains appropriate. In determining how long to maintain the current 0 to 1/4 percent target range for the federal funds rate, the Committee will assess progress--both realized and expected--toward its objectives of maximum employment and 2 percent inflation.