OMC United

The Federal Reserve's Open Market Committee voted unanimously on policy actions,leaving the key U.S. interest rate at 0-0.25%.The markets initially rallied on the statement,but later pulled back because of its inflationary implications.When the Federal Reserve buys Treasury and agency bonds,this tends to drive up interest rates,causing inflation.It is willing to take that risk now in order to restart economic growth.The Fed essentially prints as much money as it needs;it doesn't use tax dollars for its policy actions.The Bank of England has the same power and has enacted a purchase program in the U.K. similar to the Fed's.