Fed ends asset-buying program, notes housing ‘remains slow’ (source: Scotsman Guide)

 

The Federal Reserve Board announced today that it will end its program of buying mortgage-backed securities (MBS) and other assets by Friday, confirming the statement of intent it made this past July.

The Fed cited robust job growth and increased household spending in its decision to end the quantitative-easing program, but also noted that the housing recovery “remains slow.”

In the coming months, the Fed will decide when to allow interest rates to increase, which would effect mortgage rates.

The Fed said that keeping the federal-funds rate near zero “remains appropriate.” Some analysts speculate that the Fed will let that rate rise sometime next summer. The Fed indicated that it wants to see more employment growth and inflation near 2 percent before raising short-term rates.

To read story in entirety at ScotsmanGuide.com, CLICK HERE.

 

Share
Disclaimer: All data and information provided on this site is for informational purposes only. Zoliath.com makes no representations as to accuracy, completeness, correctness, suitability, or validity of any information on this site and will not be liable for any errors, omissions, opinions or delays in this information or any losses, injuries, or damages arising from its display or use. All information is provided on an as-is basis.