The Federal Reserve announced it would continue its bond buying program through June as scheduled. The inflation outlook is not expected to warrant an increase in interest rates immediately following the end of QE2. However, commodity prices have steadily been pushing higher and the Fed raised their inflation forecast from 1.3% to 1.7% in 2011. The Fed did not foreshadow the economy reaching its expected inflation rate of 2% until as late as 2013 which would probably not call for a raise in the interest rate in the near future. The Federal Reserve's next scheduled FOMC meeting will be in July.
Wall Street Journal, Wednesday, April 27, 2011
Fed Signals Intent to Complete Bond Buying
Watch Ben Bernanke's FOMC press conference:
Fed Chairman Ben Bernanke's FOMC Press Conference
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