Federal Reserve Cautious On Recovery, Sticks To $600 Billion Bond Plan

WASHINGTON: The Federal Reserve on Tuesday offered only a cautious nod to the economy’s improving prospects as it put a spotlight on lofty unemployment and reaffirmed its commitment to buy $600 billion in bonds.In a statement that emphasize…

WASHINGTON: The Federal Reserve on Tuesday offered only a cautious nod to the economy’s improving prospects as it put a spotlight on lofty unemployment and reaffirmed its commitment to buy $600 billion in bonds.

In a statement that emphasized job market weakness and low inflation, the Fed characterized the U.S. expansion as “continuing,” a modest upgrade from its November description of the recovery as “slow.”

“The economic recovery is continuing, though at a rate that has been insufficient to bring down unemployment,” the Fed said in a statement at the conclusion of a one-day meeting.

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