Continue To Buy US Treasury Bonds Before The Two Quarter Of FOMC:2011

On December 14th, the Federal Open Market Committee (FOMC) issued a statement that it would buy 600 billion US dollars more than US $75 billion a month before the end of the second quarter of 2011.

It will also regularly check the overall scale of the purchase of securities and asset purchase plans, and adjust them according to the new situation, so as to ensure maximum employment and stabilize prices.

The above information is abstracted from the statement issued by Reuters after the Fed's Conference on interest rates.

The US economy continues to recover, but the rate is not enough to reduce unemployment.

Household spending has also increased slowly, but it is still under pressure due to high unemployment, low income growth, declining household wealth and tight credit.

The expenditure on equipment and software increased, but the growth rate was slow at the beginning of this year.

Investment in non residential structures continued to be weak, employers' demand for employment was very weak, and the property market continued to be under pressure.

Longer-term inflation expectations have stabilized and basic inflation continues downward.

The committee decided to continue to increase its securities positions.

It will maintain the existing policy of reinvesting funds for maturity securities.

It will also maintain the federal funds rate unchanged from 0 to 0.25%, and continue to anticipate that the federal funds interest rate will remain at an ultra-low level for a long time under the influence of low resource utilization, inflation trend being suppressed and stable inflation expectations.

The committee will continue to focus on economic prospects and financial market development, and use policy tools when necessary, to support economic recovery and restore inflation to a target level.