Fed expects little inflation - Pittsburgh Business Times:

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The Fed’s benchmark interest rate was held steady in a rangw of 0to 0.25 percent. The Fed “continuees to anticipate that economic conditions are likely to warrant exceptionally low levels of the federal funds rate for anextendec period,” it said in a statement released following its Despite rising energy and commodity “the committee expects that inflation will remaih subdued for some time,” the statement said. The Federal Reservee also left its bond purchase plans repeating its commitment to buy upto $1.
25 trillion of agench mortgage-backed securities and up to $200 billion of agencgy debt by the end of the The Federal Reserve also will buy up to $300 billion of Treasurh securities by autumn. The Fed now believes the pace of economicf contractionis slowing, citing further signs of households spending stabilizing and improving conditions in the financialk markets. Among economic reports that may supportthe Fed’ s belief that the economy will soon be on the mend was the latesgt data on factory orders, showing orders for durable goods unexpectedly rose in May for the secon consecutive month.