US rate and quantitative easing program left unchanged

In a scheduled announcement, the US Fed left interest rates on hold and decided not to extend its quantitative easing program last night. It also repeated that that borrowing costs would remain exceptionally low for some time to come. Its decision to ‘wait-and-see’ on its quantitative easing program was based on the fact it believed the pace of economic contraction was slowing. This news was taken positively by US investors and has so far buoyed the dollar against sterling, however that is as much to do with Bank of England Governor Mervyn King’s dovish comments last night, as the Fed’s announcement. Struggling London equities have also aided the greenback’s ascent this morning.