Fed much more upbeat about outlook

Posted by Forexsq 461 days ago (http://www.marketwatch.com)
img The central bank has said it would keep interest rates close to zero so long as the jobless rate, now at 7.6%, was above its 6.5% threshold. Yet Fed Chairman Ben Bernanke also stressed Wednesday that the bank’s rosier forecast doesn’t mean the bank will begin to scale back bond purchases or raise short-term interest rates in the near future.

In a news conference after the Fed meeting, Bernanke said the bank has to be convinced that the economic recovery is on solid upward path before it starts to withdraw support for its low-interest strategy aimed at boosting U.S. growth. The Fed’s willingness to apply the brakes is “still far in the future,” he said.

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