The Federal Reserve has cut aid to the economy by another $10 billion a month. Securities purchases thus fell to 25 billion a month, of which 15 billion in Treasuries and 10 billion in mortgage-related securities. In this evening's meeting, the Fomc also left the cost of money unchanged in the range between 0 and 0,25%, assuring that rates will remain low for a long time and that an accommodative monetary policy remains appropriate.
The American Central Bank specified that "the reduction of aid to the economy will continue with measured steps if the outlook allows it" underlining that consumption is on the rise and the real estate market remains weak. On the inflation front, long-term expectations remain stable and the chances of consumer prices persisting below 2% have diminished.
