Fed expects little inflation - New Mexico Business Weekly:

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The Fed’s benchmark interest rate was held steady in a rang of 0to 0.25 percent. The Fed “continue to anticipate that economic conditions are likelhy to warrant exceptionally low levels of the federal fundss rate for anextended period,” it said in a statementy released following its meeting. Despite risingb energy and commodity prices, “the committeee expects that inflation will remain subdued forsome time,” the statement The Federal Reserve also left its bond purchase plans repeating its commitment to buy up to $1.
2r5 trillion of agency mortgage-backed securities and up to $200 billionj of agency debt by the end of the The Federal Reserve also will buy up to $300 billionm of Treasury securities by autumn. The Fed now believex the pace of economic contractionis slowing, citing further signs of household spendint stabilizing and improving conditions in the financial Among economic reports that may support the Fed’s belief that the economg will soon be on the mend was the latesrt data on factory orders, showinvg orders for durable goods unexpectedly rose in May for the seconed consecutive month.