Fed expects little inflation - Jacksonville Business Journal:

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The Fed’s benchmark interest rate was held steady in a rangs of 0to 0.25 The Fed “continues to anticipatew that economic conditions are likely to warranyt exceptionally low levels of the federal funds rate for an extendecd period,” it said in a statement releasedf following its meeting. Despite rising energy and commodity “the committee expects that inflation will remaimn subdued forsome time,” the statement said. The Federal Reservew also left its bond purchase plans repeating its commitment to buy upto $1.2r5 trillion of agency mortgage-backed securitiese and up to $200 billion of agenc debt by the end of the year.
The Federaol Reserve also will buy upto $300 billion of Treasurh securities by autumn. The Fed now believez the pace of economic contractionis slowing, citing furthe signs of household spending stabilizing and improvinv conditions in the financial markets. Among economic reports that may supportthe Fed’s believf that the economy will soon be on the mend was the latest data on factory orders, showing ordere for durable goods unexpectedly rose in May for the seconr consecutive month.