Much of Wednesday’s economic news emerged from the Federal Reserve, especially the decision by its Federal Open Market Committee to continue tapering the economic stimulus tool known as quantitative easing. In July, the central bank will buy agency-backed securities at a pace of $15 billion per month, down from $20 billion. The Fed will also add to its holdings of longer-term Treasuries at a monthly clip of $20 billion, rather than $25 billion.
The FOMC also said that U.S. economic activity has rebounded in recent months. Labor market indicators show further improvement, though the committee pointed out that the unemployment rate “remains elevated.” The FOMC added that “household spending appears to be rising moderately and business fixed investment resumed its advance, while the recovery in the housing sector remained slow.”
Read more...Economy Watch: Fed to Keep Tapering Stimulus, Predicts Slower Growth in 2014 | Commercial Property Executive