US QE2 "Stop Press"

• $600 billion purchase of Treasury continue 
• The benchmark interest rate unchange for an “extended period.”
• Gains in manufacturing, retail sales and inflation.
• Dollar Strengthern

$600 billion purchase 
The central bank has bought $114.1 billion of Treasuries since Nov. 12, when it began purchases under the program dubbed QE2 for the second round of so-called quantitative easing.
The Fed bought $1.7 trillion of mortgage debt and Treasuries in the first round through March 2010.

Interest Rate Target
Fed officials left their target for the federal funds rate, which covers overnight interbank loans, in a range of zero to 0.25 percent, marking two years of the policy.

Munufacturing and Retail Sales
Sales at U.S. retailers last month rose more than forecast, a government report showed today. Manufacturing expanded for a 16th consecutive month in November, and a measure of consumer confidence increased in December to a six-month high

Inflation
Inflation excluding food and fuel costs, as measured by the personal consumption expenditures price index, fell to 0.9 percent in October, the slowest pace since records began in 1960.
Central bankers prefer a long-run rate of 1.6 percent to 2 percent for the so-called core PCE gauge.
Inflation expectations for the next five years, as measured by the breakeven rate between nominal and inflation-indexed bonds, rose to 1.58 percent yesterday from 1.47 percent on Nov. 3.

Dollar Effect
Dollar strengthening has defied skeptics who said the policy would weaken the currency. Dollar has climbed 3.8 percent against a basket of six currencies.

Note On ... from Fed
The recovery “is continuing, though at a rate that has been insufficient to bring down unemployment,” the Fed statement said. “Household spending is increasing at a moderate pace, but remains constrained by high unemployment, modest income growth, lower housing wealth, and tight credit.”