Beginning in May, the Committee will slow purchases to $20 billion per month in mortgage-backed securities and $25 billion per month in longer-term Treasury securities. The FOMC statement notes that, “Asset purchases are not on a preset course, and the Committee's decisions about their pace will remain contingent on the Committee's outlook for the labor market and inflation as well as its assessment of the likely efficacy and costs of such purchases.”
The FOMC plans to keep interest rates at near-zero levels for some time, holding the target rate at 0.25%. The release stated that, "The Committee currently anticipates that, even after employment and inflation are near mandate-consistent levels, economic conditions may, for some time, warrant keeping the target federal funds rate below levels the Committee views as normal in the longer run." Even though purchases are slowing, the balance of securities means that policy remains accommodative.
The FOMC noted that growth has recovered from the headwinds presented by winter weather. Despite the overall growth of the economy, the Committee said that, "the recovery in the housing sector remained slow."
Read the full FOMC statement below.