The Federal Reserve last night indicated it has no plans to tone down its quantitative easing programme in the near future, arguing the US economy is not in a strong enough position to turn off the liquidity taps.
Minutes released last night from the Federal Reserve's July meeting said US economic growth is "modest" and could be curtailed later in the year if the inflation rate remains stubbornly below 2%. The comments come after US GDP growth for the second quarter, released yesterday, came in well ahead of expectations at 1.7%, beating the 1% market prediction. "To support continued progress toward maximum employment and price stability, the committee today reaffirmed its view that a highly accommodative stance of monetary policy will remain appropriate for a considerable time after the asset...
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