Fed pledges to stick with QE

Julian Harris
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AMERICA’S ultra loose monetary policy will continue, the Federal Reserve announced last night, despite admitting to strong inflationary pressures affecting prices.

The US recovery is “on a firmer footing” than when it started the year, the Fed said, yet it unanimously voted to continue quantitative easing.

Interest rates will stay at “exceptionally low levels,” the Fed confirmed, despite acknowledging the need to “pay close attention to the evolution of inflation and inflation expectations.”

“Even still, the Fed has made barely any progress in admitting the rising profile of core inflation and expectations,” said ING’s Rob Carnell.

Equities recovered slightly on the back of the statement.