The Federal Reserve maintained near zero interest rates and retained the pace of asset repurchases, according to the statement. The central bank acknowledged uptick in economic recovery.
Fed chair Jerome Powell said froths noticed in equity markets and some other places were due to factors apart from the agency’s accommodative policy.
Fed expects persistent inflation to remain for a while and labor market conditions to improve.
The Fed will wait for inflation to marginally exceed the 2% target before taming the expansionary monetary policy.
Powell noted that the economy is yet to attain “substantial progress” to allow tapering with asset purchases.
U.S stocks and the dollar are currently gaining, SPY is up 0.58%, QQQ is up 0.64%, EURUSD is down 0.16%
