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Information received since the Federal Open Market Committee met inSeptemberOctober suggests that economic activityhasand employment havecontinued to expand at a moderatepace in recent months. Growth in employment has been slow, and , apart from weather-relateddisruptions. Althoughthe unemployment ratehas declined somewhat since the summer, itremains elevated. Household spending hasadvanced a bit more quickly, but growth in business fixed investment has slowed. Thecontinued to advance, and thehousing sector has shownsomefurther signs of improvement,albeit from a depressed level. but growth in business fixedinvestment has slowed.Inflationrecently picked up somewhat, reflecting higher has been

running somewhat below the Committee’s longer

-run objective, apart from temporary variationsthat largely reflect fluctuations inenergy prices. Longer-term inflation expectations have remained stable.Consistent with its statutory mandate, the Committee seeks to foster maximum employment andprice stability. The Committee remains concerned that, without sufficient policyaccommodation, economic growth might not be strong enough to generate sustainedimprovement in labor market conditions. Furthermore, strains in global financial marketscontinue to pose significant downside risks to the economic outlook. The Committee alsoanticipates that inflation over the medium term likelywouldwillrun at or below its 2 percentobjective.To support a stronger economic recovery and to help ensure that inflation, over time, is at therate most consistent with its dual mandate, the Committee will continue purchasing additionalagency mortgage-backed securities at a pace of $40 billion per month. The Committee also willcontinue through the end of the yearpurchase longer-term Treasury securities afterits program toextend the average maturity of its holdings of Treasury securities, and it is completed at the endof the year, initially at a pace of $45 billion per month. The Committeeis maintaining its existingpolicy of reinvesting principal payments from its holdings of agency debt and agency mortgage-backed securities in agency mortgage-backed securities. These actions, which together and, inJanuary,will

increase the Committee’s holdings of longer

-termresume rolling over maturingTreasurysecuritiesby about $85 billion each month through the end of the year,at auction.Taken together, these actionsshouldputmaintaindownward pressure on longer-term interest rates, support mortgage markets, and help to make broader financial conditions moreaccommodative.The Committee will closely monitor incoming information on economic and financialdevelopments in coming months. If the outlook for the labor market does not improvesubstantially, the Committee will continue its purchases of Treasury andagency mortgage-backed securities,undertake additional asset purchases, and andemploy its other policy tools asappropriate,until such improvement is achieved in a context of price stability. In determining the size, pace, and composition of its asset purchases, the Committee will, as always, takeappropriate account of the likely efficacy and costs of such purchases.To support continued progress toward maximum employment and price stability, the Committeeexpects that a highly accommodative stance of monetary policy will remain appropriate for aconsiderable time after theasset purchase program ends and theeconomic recoverystrengthens. In particular, the Committeealsodecidedtodayto keep the target range for the federal funds rate at 0 to 1/4 percent and currently anticipates thatexceptionally low levels forthe federal funds rate are likely to be warranted at least through mid-2015.this exceptionally lowrange for the federal funds rate will be appropriate at least as long as the unemployment rate

remains above 6-1/2 percent, inflation between one and two years ahead is projected to be nomore than a hal

f percentage point above the Committee’s 2 percent longer

-run goal, and longer-term inflation expectations continue to be well anchored. The Committee views these thresholdsas consistent with its earlier date-based guidance. In determining how long to maintain a highlyaccommodative stance of monetary policy, the Committee will also consider other information,including additional measures of labor market conditions, indicators of inflation pressures andinflation expectations, and readings on financial developments. When the Committee decides tobegin to remove policy accommodation, it will take a balanced approach consistent with itslonger-run goals of maximum employment and inflation of 2 percent. Voting for the FOMC monetary policy action were: Ben S. Bernanke, Chairman; William C.Dudley, Vice Chairman; Elizabeth A. Duke; Dennis P. Lockhart; Sandra Pianalto; Jerome H.Powell; Sarah Bloom Raskin; Jeremy C. Stein; Daniel K. Tarullo; John C. Williams; and Janet L.Yellen. Voting against the action was Jeffrey M. Lacker, who opposedadditionaltheassetpurchasespurchase programanddisagreed withthedescriptioncharacterizationof thetime period overconditions underwhicha highly accommodative stance of monetary policy will remainappropriate andanexceptionally lowlevelsrangefor the federal funds rateare likely to willbe warranted.appropriate.