The US Federal Reserve gave a downbeat assessment of the world’s largest economy on Wednesday as it pointed to slower than expected growth and higher inflation.
The central bank said interest rates would remain on hold at 0 to 0.25 per cent for an “extended period” and it would continue to reinvest in its securities portfolio. That will keep the Fed’s balance sheet at about $2,800bn.
The toxic combination of disappointing growth but higher inflation left no hint that the central bank would consider further asset purchases to stimulate the economy.
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