The US Federal Reserve left interest rate settings unchanged with the federal funds target range at zero to 0.25 per cent and decided to wind back asset purchases from $25 billion to $15 billion a month. The Fed retained its key statement “that it likely will be appropriate to maintain the current target range for the federal funds rate for a considerable time after the asset purchase program”.
In US economic data, consumer prices fell by 0.2 per cent in August. Excluding food and energy, prices were unchanged. Both results were below market forecasts. The NAHB housing market index rose from 55 to 59 in September, above forecasts.