Fed: Economy On "Firmer Footing"

By: Associated Press
By: Associated Press

WASHINGTON -- The Federal Reserve expressed more confidence in the U.S. economy even as Japan's nuclear crisis raised worries around the globe.
The Fed said the the economic recovery is on "firmer footing" and the jobs market is "improving gradually," in a statement released after its meeting Tuesday.
That's a notable change in tone from the Jan. 26 meeting. After that meeting, Fed policymakers said the rate of economic activity was "insufficient" to bring about "significant improvement" in the job market.
The Fed on Tuesday, in a unanimous decision, said it was maintaining the pace of its $600 billion Treasury bond-purchase program to help the economy grow more strongly and to lower unemployment, which now stands at 8.9 percent.
The Fed made no mention of Japan's crisis, which caused stocks to plunge earlier in the day. But the Fed's stimulative policy would help the U.S. economy withstand widening economic risks from home and abroad.
The bond-purchase program, which is slated to end in June, is intended to lower loan rates and boost stock prices. Those forces should spur Americans to spend more and companies to hire more.
The Fed also downplayed inflation risks. It said higher energy prices is increasing inflation, but that the pickup in prices will be "transitory."

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  • by Spteach52 Location: Jackson on Mar 15, 2011 at 01:18 PM
    This report reminds of the story "The Emperor's new cloths" only in reverse. The people are told that the economy is getting better but expenses are increasing while wages are flat or stagnant. In some cases, people are without a job and the unemployment is running out. How can the reality be so different from what the Feds want the people to believe?
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