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Treasury Live: Fed to continue asset purchases

Wednesday, 12 Dec, 2012 - 01:38

Dec 12 - Reuters Fed Correspondent Pedro da Costa from inside the Treasury lockup gives key analysis of the latest decision from Federal Reserve.

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I'm -- to charge your press room where the Federal Reserve has just ordered its latest monetary policy decision. The first is that they're wrapped up its stimulus further. In an effort to support an economy continues to show signs of weakness that that in particular sliding some weakness in the labor market. And sing that inflation is still running below its its long term goal. A couple of surprises in today's decision. One was the major surprise -- the fact that the Fed announce a new set of policy -- -- Is essentially a change in the way that the defense thinks about monetary policy communicates to the public. In particular defenders now say it is going to keep rates at exceptionally low levels until unemployment eases down to six point 5%. It's currently at seven point 7% so as quite -- ways to go get their. And it will do that as long as inflation remains. Within point five percentage point. It's inflation target 2% total inflation creep up are the two and a half percent. In an effort to bring down unemployment. Otherwise the Fed really just replaced. Operation Twist which is an expiring program maturity extension and its portfolio. Went outright purchases of US treasuries some argument that and more intense stimulus because it actually increases that that's balanced. So the decision was widely expected but he -- numerical threshold. Are certainly a surprise the markets we expect and you. To not take into your approach until sometime early next year. Our Internet Custer and this is Reuters.

Treasury Live: Fed to continue asset purchases

Wednesday, 12 Dec, 2012 - 01:38

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