Fed Sees Signs of Life in Economy but Ready to Act
The Federal Reserve says the economy is growing moderately while cautioning that risks from Europe remain. It’s holding off on taking any further steps to boost the recovery.
In a statement after a two-day meeting, the Fed said Wednesday that economic growth should “pick up gradually” — a somewhat brighter view than it offered last time. It said the job market has strengthened slightly but that unemployment remains elevated. And it pointed to a pickup in inflation but said it should be only temporary.
The Fed stuck with its plan to keep a key short-term interest rate near zero through at least late 2014. It announced no new plans for further bond buying after a current program ends in June.
But Chairman Ben Bernanke told reporters at a news conference that bond buying or other steps are options if the economy should weaken.
“Those tools remain very much on the table and we will not hesitate to use them should the economy require additional support,” Bernanke said.