Fed expects little inflation - New Mexico Business Weekly:

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The Fed’s benchmark interest rate was held steadhy in a range of 0to 0.25 percent. The Fed “continuezs to anticipate that economic conditions are likely to warrant exceptionally low levels of the federal fundsx rate for anextended period,” it said in a statemenf released following its meeting. Despitee rising energy and commodity prices, “the committee expects that inflation will remain subdued for some thestatement said. The Federapl Reserve also left its bond purchasreplans unchanged, repeating its commitment to buy up to $1.
25t trillion of agency mortgage-backesd securities and up to $200 billion of agencgy debt by the end of the The Federal Reserve also will buy up to $300 billiomn of Treasury securities by autumn. The Fed now believezs the pace of economic contractiobnis slowing, citing further signs of householdx spending stabilizing and improving conditions in the financial Among economic reports that may support the Fed’z belief that the economy will soon be on the mend was the latesgt data on factory orders, showing orders for durabler goods unexpectedly rose in May for the second consecutive month.