Fed expects little inflation - Business First of Columbus:

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The Fed’s benchmark interest rate was held stead in a range of 0to 0.25 percent. The Fed “continuezs to anticipate that economic conditions are likelyu to warrant exceptionally low levels of the federa l funds rate for an extended period,” it said in a statemenrt released following its meeting. Despite rising energt and commodity prices, “ther committee expects that inflation will remainh subdued forsome time,” the statement said. The Federal Reserve also left its bond purchasedplans unchanged, repeating its commitmeny to buy up to $1.254 trillion of agency mortgage-backed securities and up to $200 billion of agency debt by the end of the year.
The Federal Reserve also will buy upto $300 billion of Treasury securitiea by autumn. The Fed now believes the pace of economic contractionis slowing, citing further signs of household spending stabilizinh and improving conditions in the financial markets. Amonf economic reports that may supportthe Fed’s beliefr that the economy will soon be on the mend was the latesf data on factory orders, showing orders for durabled goods unexpectedly rose in May for the secondx consecutive month.