Bernanke: No Change in Asset Buying Program

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Sept. 18 (Bloomberg) -- Federal Reserve Chairman Ben Bernanke discusses the decision to continue bond buying. (Source: Bloomberg)

As you know from our statement, the committee decided to keep the target range and to make no change in the asset person which -- asset purchase program or the forward guidance.

I will discuss the rationale for the moment.

Economic growth has been proceeding and a moderate pace with continued improvement in labor market conditions.

Of course, to say the job market has improved is not imply that current conditions are right.

At 7.3%, the unemployment rate remains above acceptable levels.

Long term unemployment and underemployment remain high.

Longer-term influences such as the aging of the population.

In the committee's assessment, the downside risk to growth have diminished.

Somewhat tighter financial positions in europe and increased confidence on the part of households and firms and the staying power of the u.s. recovery.

The tightening of financial conditions, if sustained, could slow the pace of and prove meant in the economy and the labor market.

Federal fiscal policy continues to be an important restraint on growth and a source of downside risk.

Apart from some fluctuations.

Inflation has continued to run below the two percent objective.

The committee recognizes that inflation below with objective could pose risk to economic performance and we will continue to monitor inflation developments closely.

The unwinding of some factors has led to moderately higher inflation recently, as expected, the committee anticipates that inflation will gradually move back towards two percent.

In conjunction with this meeting, the 17 participants, five board meetings -- four -- five board members submitted economic projections.

Each participant are conditioned on his or hugh own view of appropriate policy.

We extended the horizon of our projections through 2016. the projections for individual participants show they continue to expect moderate economic growth as well as gradual progress toward levels of unemployment and inflation consistent with the statutory mandate to foster maximum and price stability.

Participants projections for economic growth have a central tendency of 2.0 to 2.3% for 2013, rising to 2.9 in 2014 and 2.5 and 2016. for the unemployment rate, 7.1- 7.3 in 2014 and by 2016, 5.4- 5.9%. most participants the -- toward the committee's longer run objective of two percent.

The central tendency is 1.1-1.2% for this year, 1.3 in 2014 and 1.7 and 2016. with unemployment still elevated and inflation projected to run below the objective, the committee is continuing the accommodative policies.

In normal times, the committee eases monetary policy.

However, the target rates currently at zero cannot be lowered any further.

The committee has been providing policy support to the economy through methods, by purchasing and holding treasury securities and by communicating the committee's plans for setting the federal funds rate target over the medium-term.

This text has been automatically generated. It may not be 100% accurate.

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