US Federal Reserve FOMC Holds Rate at 0-0.25%

The US Federal Open Market Committee held the fed funds rate unchanged at 0 to 0.25 percent, and made no changes to the terms of the $600 billion asset purchase program or "Quantitative Easing II".  On quantitative easing the Committee's noted: "the Committee is maintaining its existing policy of reinvesting principal payments from its securities holdings and will complete purchases of $600 billion of longer-term Treasury securities by the end of the current quarter.".  The committee also noted "economic conditions, including low rates of resource utilization, subdued inflation trends, and stable inflation expectations, are likely to warrant exceptionally low levels for the federal funds rate for an extended period. "  The US reported inflation of 2.7% in March, up from 2.2% in February, while on a core basis the figures were 1.2% and 1.1% respectively.

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