Fed unmoved by improving economic data

The US Federal Reserve will push ahead with its $600bn (£385bn) stimulus programme - dubbed QE2 - as it is not convinced by improved economic data in the US, meeting notes show.

Speculation had been mounting the Fed might scale back its controversial stimulus measures given recent signs of an economic recovery in the US. Factory order figures for November, released yesterday, show a return to growth. The Fed minutes from its 14 December policy meeting revealed "the pace and size of the overall purchase programme" would depend on the strength of the recovery, reports the BBC. "However, some members indicated that they had a fairly high threshold for making changes to the programme," the notes say. "While the economic outlook was seen as improving, member...