Fed policy statement: slight further progress towards 2% inflation target
The Fed's policy statement said there had been "modest further progress" toward the 2% inflation target (the May 1 statement said there had been "a lack of progress"); it was not expected that it would be appropriate to cut interest rates until there was greater confidence that inflation was moving toward 2% on a sustainable basis; the economy continued to expand steadily, with job growth remaining strong and the unemployment rate remaining low; and it would continue to reduce its holdings of public debt and mortgage-backed securities (MBS). The economy continues to expand steadily, job growth remains strong and the unemployment rate remains low; holdings of public debt and mortgage-backed securities (MBS) will continue to be reduced.
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