WASHINGTON, October 30 (RIA Novosti) — The US Federal Reserve has decided to end the current asset purchase program due to labor market conditions improvement, the Federal Open Market Committee said in a press release.
"The [Federal Open Market] Committee decided to conclude its asset purchase program this month," the press release reads.
The Federal Reserve explained that "there has been a substantial improvement in the outlook for the labor market since the inception of its current asset purchase program."
"Moreover, the Committee continues to see sufficient underlying strength in the broader economy to support ongoing progress toward maximum employment in a context of price stability," the statement said.
According to the press release, the economic activity in the United States is expanding "at a moderate pace" and the labor market conditions have improved "with solid job gains and a lower unemployment rate." The average American consumer spending is also moderately rising although "the recovery in the housing sector remains slow."
The Federal Reserve said that it would keep target range for the federal funds rate at a the current 0 to 0.25 percent in efforts to continue stimulating American economy.
"To support continued progress toward maximum employment and price stability, the Committee today reaffirmed its view that the current 0 to 0.25 percent target range for the federal funds rate remains appropriate," the press release reads.
The Federal Open Market Committee established the near-zero federal funds rate in the end of 2008 after the onset of the global financial crisis as a measure to support the American economy, compared to 4.25-5.25 percent rate in 2007-2006.
The global financial crisis of 2007-2008 almost brought global financial institutions to a collapse and was resolved by national governments bailing out banks.
