Fed Says Economy Rebounding as It Trims Bond Purchases

Source: Bloomberg

By Jeff Kearns Jun 18, 2014 2:12 PM ET

The Federal Reserve said growth is bouncing back and the job market is improving as it continued to reduce the monthly pace of asset purchases.

“Growth in economic activity has rebounded in recent months,” the Federal Open Market Committee said today in a statement in Washington. “Labor market indicators generally showed further improvement.” Business spending “resumed its advance.”

The FOMC trimmed bond-buying by $10 billion for a fifth straight meeting, to $35 billion, keeping it on pace to end the program late this year.

Chair Janet Yellen and her fellow policy makers are debating how long to keep interest rates near zero as the U.S. labor market improves and inflation moves closer to the Fed’s 2 percent goal.

Read more: http://www.bloomberg.com/news/2014-06-18/fed-says-economy-rebounding-as-it-trims-qe-pace-by-10-billion.html