Fed stands by stimulus, sees stronger U.S. economy
By MARTIN CRUTSINGER AP Economics Writer March 20, 2013 1:08PM
Updated: March 20, 2013 2:42PM
WASHINGTON — The Federal Reserve says the U.S. economy has strengthened after pausing late last year but still needs the Fed’s extraordinary support to help lower high unemployment.
In a statement after a two-day meeting, the Fed says it’s standing by its plan to keep short-term rates at record lows at least until unemployment falls to 6.5 percent, as long as the inflation outlook remains mild. And it says it will continue buying $85 billion a month in bonds indefinitely to keep long-term borrowing costs down.
The unemployment rate fell to a four-year low of 7.7 percent in February, among many signs of a healthier economy. The Fed notes in its statement that the job market has improved. But its latest economic forecast maintains that unemployment won’t reach 6.5 percent until 2015.