By The Doc
*Fed hints at more QE as economic recovery paused due to Hurricane Sandy
*QE to continue as long as unemployment remains above 6.5%
*Federal funds rate will remain at zero-.25% as long as unemployment remains above 6.5%
*The Committee will closely monitor incoming information on economic and financial developments in coming months. If the outlook for the labor market does not improve substantially, the Committee will continue its purchases of Treasury and agency mortgage-backed securities, and employ its other policy tools as appropriate
Full January FOMC Statement is below:
FOR IMMEDIATE RELEASE
Information received since the Federal Open Market Committee met in December suggests that growth in economic activity paused in recent months, in large part because of weather-related disruptions and other transitory factors. Employment has continued to expand at a moderate pace but the unemployment rate remains elevated. Household spending and business fixed investment advanced, and the housing sector has shown further improvement. Inflation has been running somewhat below the Committee’s longer-run objective, apart from temporary variations that largely reflect fluctuations in energy prices. Longer-term inflation expectations have remained stable.