Continued economic inertia sees U.S. continue with stimulus plan
Signs of continued economic instability have led members of the U.S. Federal Reserve to continue with the current stimulus policy in a bid to promote recovery.
The culmination of a two day meeting has resulted in the decision that the Federal Reserve will continue to buy $85 billion worth of government and mortgage based bonds per month, as a bid to stimulate spending.
A statement released after the meeting, said: "The committee is prepared to increase or reduce the pace of its purchases to maintain appropriate policy accommodation as the outlook for the labour market or inflation changes".
The change in policy differs from past expectations that the Federal Reserve will seek to reduced bond buying, and move in line with the U.S. fiscal policy, which has now received blame for restraining growth.
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