The Federal Reserve on Wednesday sent its strongest signal of confidence in the U.S. economy since the Great Recession, deciding that the nation’s economic prospects are finally bright enough to withstand a slight pullback in stimulus spending
Yet the Fed also made clear that it will keep supporting an economy that remains less than fully healthy. It will continue to keep interest rates low and try to boost unusually low inflation, which can be a drag on spending and borrowing
In a statement after a two-day policy meeting, the Fed said it would trim its $85 billion a month in bond purchases by $10 billion starting in January. Bernanke said the bank expects to make “similar moderate” cuts in its purchases if economic gains continue
Immediately after the Fed said it would reduce the pace of monthly asset purchases to $75 billion from $85 billion, #gold prices fell from their Comex settlement price then recovered to trade a bit higher
The bond-buying program, also known as quantitative easing, has been a supportive factor for gold prices so some analysts expected that a decision to taper the program would pressure gold prices
Yet the Fed also made clear that it will keep supporting an economy that remains less than fully healthy. It will continue to keep interest rates low and try to boost unusually low inflation, which can be a drag on spending and borrowing
In a statement after a two-day policy meeting, the Fed said it would trim its $85 billion a month in bond purchases by $10 billion starting in January. Bernanke said the bank expects to make “similar moderate” cuts in its purchases if economic gains continue
Immediately after the Fed said it would reduce the pace of monthly asset purchases to $75 billion from $85 billion, #gold prices fell from their Comex settlement price then recovered to trade a bit higher
The bond-buying program, also known as quantitative easing, has been a supportive factor for gold prices so some analysts expected that a decision to taper the program would pressure gold prices
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