The Federal Reserve on Wednesday made two notable changes to its eagerly awaited policy meeting statement since its last meeting in June, as it upgraded its view of the economy and set a clear date to end its bond purchase program.
The Federal Open Market Committee, which voted unanimously today 10-0 today, said economic activity is “leveling out,” a positive shift from the independent government agency’s statement in June stating that “economic contraction is slowing.”
The Fed also extended the time it would need to boost the U.S. economy through what is essentially money “printing,” saying it would finish its purchases of $300 million of Treasury securities by the end of October, compared to its previous statement that the buys would end by September.
In support of its view of the economy, the Fed noted that financial markets “have improved further in recent weeks.”
Business activity was also a concern, with the Fed noting that cutbacks “are still” taking place on fixed investment and staffing to bring their inventories into better alignment with sales.