Federal Reserve to make no changes to monetary policy

The Federal Reserve’s policy making committee the Federal Open Market Committee voted 9 to 1 to halt changes to the central bank’s ongoing stimulus policies and renewed its pledge to keep interest rates at record lows through 2013.

The Fed said in a statement Monday that “The economy has been expanding moderately and indicators point to some improvement in overall labor market conditions” but also stated that the “the unemployment rate remains elevated and strains in global financial markets continue to pose significant downside risks”.

The Operation Twist policy, which the Fed launched in September, is intended to bring down long-term interest rates by making it cheaper for businesses, consumers and potential homebuyers to secure cheap loans.

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