Financial Times FT.com

Fed to split monetary and liquidity policy

By Krishna Guha in Washington

Published: December 14 2009 18:56 | Last updated: December 14 2009 18:56

The Federal Reserve is unlikely to make any big changes to its monetary policy stance at the conclusion of its December meeting on Wednesday, though there is a chance it could make some alterations to its provision of liquidity.

The US central bank is likely to keep the key line of its policy guidance – in which it says it expects to keep rates at “exceptionally low levels” for an “extended period” – unchanged.

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