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Fed Refrains From Tapering, Keeps $85b/mo. of Purchases in Place 2013-10-30 18:07:57.471 GMT
By Vivien Lou Chen Oct. 30 (Bloomberg) -- FOMC keeps much of statement unchanged since Sept., leaves $45b/mo. of UST purchases and $40b/mo. of MBS purchases in place, and adds new language on slowing housing sector. * Officials keep language on “moderate pace” of economic expansion, and keep sentence on risks that inflation might fall persistently below 2% target * Fed adds new language on recovery in housing sector slowing somewhat in recent months, removes reference to strengthening in industry * FOMC removes language on possibility of tighter financial conditions slowing pace of improvement in economy and labor market * Fed reaffirms view that highly accommodative policy will remain appropriate for “considerable time” after QE ends and recovery strengthens * Committee still sees economy picking up from its recent pace with appropriate accommodation * FOMC continues to describe unemployment as “elevated” and gradually declining; keeps language saying downside risks to economic outlook and labor market have diminished since last fall * FOMC still expects medium-term inflation to return to objective, keeps reference to long-term expectations remaining stable * Fed retains current unemployment and inflation thresholds of 6.5% and 2.5% * Kansas City Fed Pres. Esther George dissents for seventh time on concern that high level of accommodation increases risks of imbalances and could cause higher long-term inflation expectations * Link to Statement: NSN MVHTZZ3V2803 <GO>
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--Editors: Greg Chang, Vivien Lou Chen
To contact the reporter on this story: Vivien Lou Chen in San Francisco at +1-415-617-7078 or vchen1@bloomberg.net
To contact the editor responsible for this story: James Holloway at +1-212-617-4454 or jholloway8@bloomberg.net