The open-door policy may have ended but it is an open question how effective the new labour-market controls will turn out to be.
The central bank said "labor market conditions have deteriorated, and the available data indicate that consumer spending, business investment and industrial production have declined" since its policy-setting Federal Open Market Committee last met.
The Federal Open Market Committee will end a two-day policy-setting meeting later Wednesday that is likely to show central bank officials are more upbeat about the economy but not enough to tighten loose-borrowing costs that have encouraged risk-taking, economists say.
He said he sees firmer prices next week, supported by physical demand and the underlying support of ultra-loose monetary policy by the Federal Open Market Committee.
FORBES: METALS OUTLOOK: Cautious Trading May Remain The Trend For Gold
The Federal Open Market Committee, the Federal Reserve's policy-setting panel, has reiterated plans to keep rates at exceptionally low levels at least through late 2014.
The Federal Open Market Committee meets Tuesday to discuss its record-low interest rate policy.
Many market watchers are looking ahead to the two-day Federal Open Market Committee meeting, where the Federal Reserve reviews monetary policy.
Minutes from the latest meeting of the Federal Open Market Committee, the central-bank panel that sets interest-rate policy, indicate a rate-cut idea has been around for a while.
The Fed conducts traditional monetary policy by buying or selling short-term Treasury securities in the open market.
Hopes for further accommodative monetary policy from the Federal Open Market Committee abated earlier this year after non-farm payrolls grew for three straight months by more than 200, 000 jobs.
FORBES: Gold Reclaims $1,600/Oz After Weak U.S. Jobs Number Ups Expectations For More Fed Easing
Some of the bulls listed the likelihood of further loosening of monetary policy by the European Central Bank down the road and potential for the Federal Open Market Committee to hint at more possible easing in the U.S. when policy-makers meet next week.
FORBES: Survey Participants Split But With Slight Downside Bias On Gold Prices Next Week
As the storm gathered during 2008, the Fed aggressively eased monetary policy by using such open market operations (supplemented by discount rate reductions) to drive short-term interest rates to near-zero levels.
The monetary expansion following an open-market operation involves adjustments by banks and the public. (To find out more, see Formulating Monetary Policy.) The bank in which the original check from the Fed is deposited now has a reserve ratio that may be too high.
应用推荐