Officials at the Federal Reserve have tried to calm investors
by emphasising that bond purchases will not halt until the economy strengthens.
The comments are the strongest signals yet by monetary
officials following recent market turmoil.
Markets were rattled after chairman Ben Bernanke indicated
last week that the Fed would start scaling back its extraordinary support of
the economy.
A survey on Thursday showed a sharp rise in mortgage rates
this week.
William Dudley, president of the Federal Reserve Bank of New
York, said: "If labour market conditions and the economy's growth momentum
were to be less favourable, I would expect that the asset purchases would
continue at a higher pace for longer."
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