Fed holds fire on further policy action

The Federal Reserve has opted to leave monetary policy unchanged and continue with Operation Twist at least until the new year, amid signs the world's largest economy has been expanding.

Following its December meeting, the Federal Open Markets Committee (FOMC) said it would continue its programme to extend the average maturity of its holdings of treasuries, previously announced in September. However, it opted not to take any further policy action. In a statement it said: "To support a stronger economic recovery and to help ensure that inflation, over time, is at levels consistent with the dual mandate, the committee decided today to continue its program to extend the average maturity of its holdings of securities as announced in September." The Fed remains concerne...