Fed expected to sit on hands in October after flurry of activity

Ben Southwood
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THE FED will hold fire at this week’s policy setting meeting, analysts predicted over the weekend.

The Federal Open Markets Committee – which sets interest rates and quantitative easing (QE) – will keep the status quo at this week’s meeting, analysts say, after a flurry of accommodative monetary policy measures at the last meeting in early September.

This included $40bn (£25bn) per month of new QE, a vow to keep interest rates below 0.25 per cent until unemployment recovers, and loan extensions.

“The... success of September’s actions as well as caution ahead of elections and... uncertainties about the fiscal cliff suggest the committee will pause,” said Robert DiClemente at Citi.