The Federal Reserve kept its US$85 billion-a-month of bond buying in place as expected, saying it wants more signs of the world's biggest economy is picking up, given recent weak data and the budget impasse in Washington.
"Available data suggest that household spending and business fixed investment advanced, while the recovery in the housing sector slowed somewhat in recent months," the Fed's policy-setting Federal Open Market Committee said. "Fiscal policy is restraining economic growth."
The fed's announcement comes in a week when data showed private-sector employers hiring shrank to a six-month low, retail sales fell, consumer confidence recorded its biggest decline in two years and factory output and home sales were weaker than expected. Added to that, was the 16-day fiscal shutdown.
"Taking into account the extent of federal fiscal retrenchment over the past year, the committee sees the improvement in economic activity and labor market conditions since it began its asset purchase program as consistent with growing underlying strength in the broader economy," the FOMC said.
US Treasuries erased gains, with the benchmark 10-year bond rising 2.4 basis points to 2.48 per cent and gold futures rose 0.5 per cent.
