The U.S. Federal Reserve (Fed ) decided to keep its monetary stimulus program to purchase monthly passes for 85,000 million dollars and low interest rates to the " moderate" growth and " high" rate of unemployment.
Following its two-day meeting , the Federal Open Market Committee of the Fed first announced formally that could raise or lower the rate of bond purchases " change depending on whether the labor market prospects or inflation."
The U.S. central bank said inflation is "somewhat below" the target of 2 % and that the labor market has " shown some improvement ," but described the unemployment rate of 7.6% in March "high " .
"The committee hopes that, with appropriate expansionary policy , economic growth will continue at a moderate pace and the unemployment rate will gradually reduce ," said the statement, in which the Fed was flexible to adapt this policy to the situation economical .
The U.S. central bank has announced that it will keep the benchmark interest rates at exceptionally low levels of between 0% and 0.25% until unemployment drops 6.5% or inflation rises above 2 , 5 % .
The decision came with 11 votes in favor and 1 against , the president of the Federal Reserve Bank of Kansas City, Esther George , who said that the high level of monetary expansion has increased the risks of future economic and financial imbalances. "
Housing market recovery
In the U.S. the housing market is recovering again, areas where prices have begun to climb, while mortgage rates are at record lows . Also, the stock market on Wall Street is to pre the financial crisis in September 2008 bankruptcy of Lehman Brothers levels.
Wall Street extended its downtrend in the final stretch of the day and the Dow Jones, its main indicator, closed with a decline of 0.94 %. Despite the positive details in the U.S. , retail sales , industrial production and household spending remains weak and feeds Stealth monetary authorities not to raise too many expectations .
Agreement of a tax plan
In addition , the U.S. economic recovery remains to Congress and President Barack Obama finally agree on a fiscal and long-term budget plan for the country.
In March, the automatic budget cuts were implemented worth 85.000 million this year and $ 1.2 trillion over the next decade , which if not replaced by another agreement could seriously affect several economic sectors.
The White House wants the agreement to replace the cuts with more " sensible" is accompanied by a tax increase to help cure the growth of the debt of the world's largest economy .