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Federal Reserve to stay the course

Dec. 14, 2010 at 3:53 PM   |   Comments

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WASHINGTON, Dec. 14 (UPI) -- The U.S. Federal Reserve said Tuesday it would stay the course with a $600 billion bond purchasing program, as the recovery has yet to impact unemployment.

The Fed said "the economic recovery is continuing, though at a rate that has been insufficient to bring down unemployment."

A month ago, the Fed initiated the program that elicited widespread criticism overseas, as it will dilute the strength of the dollar. The Fed also said it would monitor the results at its Open Market Committee meetings.

The Fed said it would continue buying long-term Treasury securities at a rate of $75 billion per month for six months and keep its federal funds rate at zero to 0.25 percent.

"Currently, the unemployment rate is elevated, and measures of underlying inflation are somewhat low," the Fed said in a statement, reminding the public of its "dual mandate" of managing inflation and minimizing unemployment.

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