Reuters reports that the Federal Reserve announced it would keep interest rates near zero for a “considerable time,” but may raise borrowing costs faster than expected.
The announcement was made at the same time the Federal Open Market Committee announced a further $10 billion reduction in its monthly purchases, putting the bond-buying stimulus program on course to end next month. This announcement is contrary to the projections of many economists and traders who had expected the U.S. central bank to alter the rate guidance, given generally improving data on economic performance.
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