US FOMC signals caution over optimistic data

The US Federal Open Market Committee(FOMC) is remaining cautious over the country's economic outlook, despite recent positive data buoying investor sentiment.

According to minutes of its latest meeting on 2 November, which includes US Federal Reserve chairman Ben Bernanke, developments since September indicated a reversal in the temporary factors that weighed on growth in early 2011. "The Committee continues to expect a moderate pace of economic growth over coming quarters and consequently anticipates that the unemployment rate will decline only gradually toward levels that the Committee judges to be consistent with its dual mandate," read the minutes. The FOMC also referred to increased household spending and a boost in investment in equip...