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Fed confirms QE end at October and rates hiking next year; but everything will be data dependent

The Federal Reserve maintained its interest rate unchanged at 0.25% while its QE was reduced by another $10B leaving the purchases ready to be finished next meeting as expected.

In a posterior conference press, Yanet Yellen affirmed that the Fed funds rate is expected to move close to normal level by 2017. However, rates could rise sooner and more rapidly if economy improves more quickly, will rise later and more slowly if economy weak.

Yellen also affirmed that unemployment dropped, labor conditions have improved, inflation drop risk has fallen since the QE3. Overall, economic activity expanding at moderate pace.

Finally, Yellen commented that the monetary policy will be data dependent.

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