The Fed announced no further bond-buying efforts. But it held out the possibility of doing so later. It said it was prepared to adjust its “holdings as appropriate to promote a stronger economic recovery in the context of price stability.”
Some economists say that means the Fed will take further action soon.
Julie Coronado, an economist at BNP Paribas, said the Fed is signaling it will boost its purchases of bonds and other assets if growth fails to accelerate, even if the economy doesn’t slow. That is a “very low bar indeed,” she wrote in a note to clients.
“This is a fairly clear-cut signal that inflation is not on their radar at this point,” Tom Porcelli, an economist at RBC Capital Markets, wrote in a research note.
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