Fed keep rates at record lows; upbeat on economy
Fed pledges to keep rates at record lows but is confident economy will keep strengthening
Jeannine Aversa, AP Economics Writer, On Wednesday April 28, 2010
WASHINGTON (AP) -- The Federal Reserve sounded a more confident note Wednesday that the economy is strengthening but pledged to hold rates at record lows to make sure it gains traction.
Wrapping up a two-day meeting, the Fed in a 9-1 decision retained its pledge to hold rates at historic lows for an "extended period." Doing so will help energize the recovery.
The Fed offered a more upbeat view of the economy even as it noted that risks remain. It said the job market is "beginning to improve," an upgrade from its last meeting in mid-March. It observed then that the unemployment situation was merely "stabilizing."
The Fed also noted that consumer spending has "picked up," an improvement from its last observation that spending was expanding at a "moderate pace."
