United States: No change in the Fed's policy stance
June 22, 2011
At its 21-22 June meeting, the Federal Open Market Committee (FOMC) left the federal funds rate unchanged within the historically low range of 0% to 0.25% set in December 2008, in a decision that was widely expected by the market. Moreover, the FOMC maintained the same tone as in the previous meetings, stating that economic conditions are likely to warrant exceptionally low levels for the federal funds rate for an extended period. Meanwhile, the FOMC voted against further expansion of its asset purchase programme, commonly referred to as QE2. As a result, the programme will end in June with the acquisition of a total of USD 600 billion of U.S. Treasury bonds. Nonetheless, monetary stimulus will not be removed, as the Committee confirmed that the Federal Reserve will reinvest the proceeds from the maturing debt.