The US Federal Reserve kept its foot on the monetary accelerator but made a slight change to its language on its third round of quantitative easing that puts greater weight on the costs and risks.
Asset purchases under QE3 will continue at $85bn a month and the US central bank expects to keep interest rates low until the unemployment rate falls below 6.5 per cent from the current 7.7 per cent.
But a tweaked line in yesterday’s statement from the Federal Open Market Committee says the Fed “will continue to take appropriate account of the likely efficacy and costs of such purchases as well as the extent of progress toward its economic objectives”.