Wednesday, 30 October 2013

Economy News Headlines - Yahoo! News: Fed maintains strong stimulus as U.S. growth stumbles

Economy News Headlines - Yahoo! News
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Fed maintains strong stimulus as U.S. growth stumbles
Oct 31st 2013, 00:37

The facade of the U.S. Federal Reserve building is reflected on wet marble during the early morning hours in WashingtonBy Pedro da Costa and Alister Bull WASHINGTON (Reuters) - The Federal Reserve extended its support for a soft U.S. economy on Wednesday, sounding a bit less optimistic about growth as it announced plans to keep buying $85 billion in bonds per month. In announcing the decision, the Fed nodded to weaker economic signals that have been due in part to a fiscal fight in Washington that shuttered much of the government for 16 days earlier this month. The central bank noted that the recovery in the housing market had lost some steam and suggested some frustration at how slowly the labor market was healing. However, it also dropped a phrase expressing concern about a run-up in borrowing costs, suggesting greater comfort with the current level of interest rates.


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