LOC21:16
18:16 GMT
WASHINGTON, June 22 (KUNA) -- The Federal Reserve affirmed here Wednesday
that the U.S. economic recovery is "continuing at a moderate pace, though
somewhat more slowly".
The Federal Open Market Committee said in a statement that since it met in
April "the economic recovery is continuing at a moderate pace, though somewhat
more slowly than the Committee had expected".
The Committee added that also recent labor market indicators have been
"weaker than anticipated."
"The slower pace of the recovery reflects in part factors that are likely
to be temporary, including the damping effect of higher food and energy prices
on consumer purchasing power and spending as well as supply chain disruptions
associated with the tragic events in Japan," according t the Committee.
It added that "inflation has picked up in recent months, mainly reflecting
higher prices for some commodities and imported goods, as well as the recent
supply chain disruptions," but that "longer-term inflation expectations have
remained stable".
"The Committee will continue to pay close attention to the evolution of
inflation and inflation expectations," the statement noted.
Furthermore, the Committee has decided to keep the target range for the
federal funds rate at zero to 0.25 percent "to promote the ongoing economic
recovery and to help ensure that inflation, over time, is at levels consistent
with its mandate".
It indicated that it will "complete its purchases of USD 600 billion of
longer-term Treasury securities by the end of this month and will maintain its
existing policy of reinvesting principal payments from its securities
holdings".
The Committee affirmed that it will "regularly review the size and
composition of its securities holdings and is prepared to adjust those
holdings as appropriate".
"The Committee will monitor the economic outlook and financial developments
and will act as needed to best foster maximum employment and price stability,"
the statement concluded. (end)
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