Fed: Economy Has Picked Up, Cuts Bond Buys Further

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April 30 (Bloomberg) -- The Federal Reserve said the economy is gaining momentum as consumers spend more, and said it would continue to trim the pace of bond purchases. Peter Cook reports on Bloomberg Television’s “Bottom Line.” (Source: Bloomberg)

Changes in the statement today.

Forward guidance remains the same but taper continues, down to $45 million a month and by buying.

-- in bond buying.

$20 billion for mortgage backed securities.

25 billion dollars for treasuries.

They will likely continue at that measured pace if information holds up.

No changes in forward guidance language.

The biggest changes have to do with the economy, there is a sense that the fed sees traction in the economy.

Information received since the fomc committee met in march suggests growth has picked up after slowing in the winter because of weather conditions.

Labor market indicators are mixed but showed employment -- showed improvement.

Unemployment remains elevated.

Household spending appears to be writing quickly -- rising quickly.

Recovery in housing remains slow.

With appropriate policy accommodation, economic activity will expand at a moderate pace and labor market conditions will improve gradually.

The committee sees the risk in the economy and the labor market is nearly balance.

With regard to forward guidance, no changes in the statement.

The fed reaffirming its view that a highly accommodative stance of monetary policy remains appropriate.

The same language with regard to what could happen to interest rates over the long term.

It is likely to maintain the current target range for the federal funds rate after the asset program ends.

Longer-term inflation expectations remain well anchored.

The vote was unanimous, even kosher lakota -- even kocherlakota was on board.

Modest changes, tapering down to $45 billion a month.

Thank you very much.

Michael, ira.

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

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