WASHINGTON (AP) — The Federal Reserve is sticking with its $600 billion Treasury bond-purchase program to strengthen the economy as Japan’s nuclear crisis raises worries around the globe.
The Fed made no changes Tuesday to the program. The decision was unanimous. The Fed says the economic recovery is on “firmer footing” and the jobs market is gradually improving. But the housing market remains depressed.
The Fed downplays inflation risks. It said higher energy prices is increasing inflation, but that the pickup in prices will be “transitory.”
The Fed made no mention of Japan’s crisis, which caused stocks to plunge. But the Fed’s stimulative policy would help the U.S. economy withstand widening economic risks from home and abroad.
