The Federal Reserve kept interest rates unchanged, and said it expected to start winding down its bond portfolio ''relatively soon.'' Fred Katayama reports.
The Federal Reserve kept interest rates unchanged between 1 to 1.25 percent. It also said it'll start winding down its $4.5 trillion balance sheet "relatively soon." In a statement following a two-day policy meeting, the central bank indicated the U.S. economy is growing moderately and job gains are solid. But it noted that overall inflation and a measure of underlying price gains have fallen. The Fed didn't say anything specific about the timing of the next rate hike or the start of the balance sheet reduction plan. Fiduciary Trust director of equity management Carin Pai says the Fed is vague on purpose. (SOUNDBITE) CARIN PAI, EQUITY MANAGEMENT DIRECTOR, FIDUCIARY TRUST, (ENGLISH) SAYING: "I think the Fed will continue on this message that they will look at the economy and make decision that is data-dependent, so, I think, they're going to continue to focus on inflation data, they're going to continue to look at the employment data, and they will move and adjust accordingly." Wall Street added to its gains following the Fed statement, and yields on U.S. government debt fell. The dollar fell against a basket of currencies. The central bank meets again in September. Some analysts say that's when it'll announce the start of its balance sheet reduction plan.