Central banks following a cautious exit strategy

Decisions by the Federal Reserve and other central banks this week to extend asset purchase and liquidity schemes signal that they are staying cautious about the strength of the recovery, despite a summer of good news from the markets and the economy at large.

The Federal Open Markets Committee said on September 23 it would keep target rates low at 0-0.25%, and would purchase "a total of $1.25 trillion of agency mortgage-backed securities and up to $200 billion of agency debt" over the next six

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